Angel Capital Association's Presentation on Why We Need More Accredited Investors

An article we liked from Thought Leader JD Alois:

Angel Capital Association Provides Compelling Information to Broaden Definition of an Accredited Investor, Countering SEC’s Ambition to Exclude More Investors

During the Securities and Exchange Commission’s meeting of the Investor Advisory Committee (IAC) yesterday (September 21, 2023), a representative from the Angel Capital Association (ACA) gave a compelling presentation advocating on behalf of his industry and why we need more Accredited Investors and NOT fewer.

The remarks were delivered by ACA CEO Patrick Gouhin.

Currently, under the direction of SEC Chairman Gary Gensler, the Commission is preparing new rules that will make the definition of an Accredited Investor more stringent, reducing the number of people who qualify to invest in Reg D securities offerings. While the Commission has not presented sufficient evidence that a high percentage of current Accredited Investors are being harmed by fraud in these private offerings, the policy shift adheres to the current leadership’s belief that investors must be protected from themselves.

Today, the ACA represents more than 16,000 Accredited Investors in 250 Angel Groups. These thousands of investors commit almost $1 billion annually into early-stage firms and report “no fraud to speak of.”

An Angel investor provides capital during early-stage funding rounds, typically a Seed round to Series A. However, these investors can…

Read the rest of this article at STARTUPEVENTS.ORG…

Want to share your news or advice for startup entrepreneurs? Submit a Guest Post here.

Ready for more startup news, free expert advice, and events? Choose from 7 free email newsletters to help grow your business and join the Startup Council FREE here now: https://StartupCouncil.org/joinsc