SEC Exemption for startup investors

Investments in startups are regulated by laws from the Securities and Exchange Commission dating back to the 1930s. These laws, while intended to protect the unsophisticated investor from fraudulent businesses, have established a special class of investors that are legally allowed to invest in startups. These people are defiened as Accredited investors: men and women with a net worth of over $1 million without their primary residence or, households with an income of over $300,000 for the last two consecutive years. There are other exemptions to the SEC regulations but most prohibit raising funds through any form of advertising or from people not personally known by you. Most challenging to entrepreneurs is that these regulations are written in a way that only qualified attorneys can interpret them.

Launch America asserts that all Americans should have the opportunity, if they choose, to invest a portion of their assets in a startup. We are petitioning the U.S. Senate to produce legislation that will allow individual investors to invest a small percentage, for example up to 10% of their net worth, and that the SEC exemption be written in a way that all Americans can understand the language and meaning of the regulation. This will create people helping people, forming teams, funding startups and a grass roots economic stimulus reviving of the American Dream.

Sign the petition to create an exemption in the SEC regulations to allow those who wish to invest in a startup, a straightforward and legal way to do so.

1 signature

Share this with your friends: