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Amendment to Financial Reform Bill will allow angel investors to stay accredited and provide seed capital to start ups
by Anne DeGheest
18 May 2010

The Senators' amendment which passed last night, May 17, 2010, will ease restrictions in the financial reform bill for accredited investors. The amendment promotes small business startups by speeding and increasing the availability of essential seed capital from qualified investors. Specifically, the amendment eliminates the language in the underlying bill that required a 120 day Securities and Exchange Commission review period for investors that prove an annual income in excess of $200 thousand and net worth totaling more than $1 million excluding the value of the primary residence of such natural person (this is NEW and was the compromised to get the bill changed).
Initially they wanted to raise the requirement to $2.5 Million (without the house) and $500K annual income!.. which the ACA, Angel Capital Association, estimated would have eliminated the majority of existing angel investors that fund American start ups.

You may be interested in these links related to the amendment:
The amendment language - SA 4056 to S.3217
Press release from the Senate Banking Committee
• ACA Public Policy web page with all the bills related information

tagsTopics: Angel funding

see also

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