Angels Fight Back

Posted on | April 23, 2010 | No Comments

As an update to my last post about the Financial Reform Bill, the Angel Capital Association is now reporting that Senator Dodd will be introducing amendments addressing at least two of the three issues relating to early stage investors.

According to peHUB, after word of the original provisions leaked out, “vc bloggers took to their keyboard with furious strokes” and trade groups flocked to Capitol Hill.  Apparently, the noise was loud enough to be heard.  You gotta love when the political system actually works.  

Here is how the Angel Capital Association is summarizing the potential amendments:

Accredited investors: Dodd’s new language would keep threshold limits at their current levels, which is $1 million in personal assets and/or annual income of $200,000 ($300,000 in the case of a joint filing). The only change would be that the value of the investor’s primary residence would be excluded from the personal asset calculation (thus raising the bar, but likely not doubling it).

Regulation D: Dodd’s new language would remove all original reference to Regulation D, thus meaning that filings and oversight would still be in the hands of federal regulators (rather than state regulators, who pushed the original language). The only addition would be the disqualification of Regulation D usage by individuals determined to be “bad actors” by federal and state authorities.

While the legislation is sure to morph numerous times as it makes its way around the Capitol, this is certainly a step in the right direction.  Thanks to everyone who cared enough to get involved.

Category: Politics, Venture Capital

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