Updated by William Carleton on Jul 24, 2013
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Questions for the SEC about proposed startup investing rules

It's not widely known, but the SEC has proposed rules that, if adopted, would make startup financing harder. Let's collect a list of questions to ask the SEC during the comment period.

1

Would you consider not adding any of the pre-filing requirements, the information requirements, and the penalties for...

2

Investor "leak" Is that General solicitation?

Questions for the SEC about proposed startup investing rules | Investor "leak" Is that General solicitation?

If an entrepreneur shares his pitch with a potential investor under 506b rules, but then the investors tweets, blogs or publicizes either a. info about the company or b. his investment in company...is that general soliciitation? and how does the start up know he's now got 30 days to file Reg D?

3

If an Angel Group, like Seattle Angel Conference or Angel oregon shares that a company is a "finalist" is that genl s...

Questions for the SEC about proposed startup investing rules | If an Angel Group, like Seattle Angel Conference or Angel oregon shares that a company is a "finalist" is that genl s...

Presuming these angel groups plan to operate under the 506b exclusion, if they announce finalists or winners of their angel competitions, is that general solicitation?

4

506 B group of Angels, what if company under consideration does tweet?

Questions for the SEC about proposed startup investing rules | 506 B group of Angels, what if company under consideration does tweet?

If a group of investors, all accredited, are looking at a start up assuming the 506b exclusion, and that start up pitches at an open "pitch night", do they now all have to provide verfification of their private assets to said firm? I don't think they'll want to.

5

Malicous investors

Questions for the SEC about proposed startup investing rules | Malicous investors

What if a malicious investor, wanting something other than the start up success deliberately does a general solicitation for a start up, just so they can later invoke recission and unravel a deal to achieve ends like fire sale of ip?

6

Start up makes mistake- doesnt file in 30 days

What if a start up makes a mistake, doesn't file form D in 30 days. now all seed round investors are at risk, since start up is in 1 year penalty box, and the firm is at risk without ability to generate capital. Is this what SEC and congress intended?

7

How does an Angel Group extract promise from start up not to do general solicitation

Questions for the SEC about proposed startup investing rules | How does an Angel Group extract promise from start up not to do general solicitation

If a third party can do a general solicitation on behalf of a startup (which is unclear), and invoke 506c, how does an angel group ensure their investments are "safely" excluded in 506b.

8

Angel Group under 506b invests in a company via a competition

Questions for the SEC about proposed startup investing rules | Angel Group under 506b invests in a company via a competition

Is the competition in and of itself a "general solicitation"? If the only investors are accredited, and members of an LLC that didn't do open solicitation?

9

Goal: Public Relations (not soliciation) for strong area startups

Questions for the SEC about proposed startup investing rules | Goal: Public Relations (not soliciation) for strong area startups

We're a group that wants to create a vibrant local economy. We have created an accredited investor group that chooses firms to invest in, but in addition, we use our visibility as a group and event to provide public relations for all of the firms entering the competition, and especially the winners, with the hope that they will find CUSTOMERS not necessarily backers. How do we do this without it being perceived as general solicitation?