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Angel Investors Saved from Obama/Dodd Restrictions
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Liddy Karter, one of our Perfect Pitch 2010 judges, played a key role in convincing Senator Christopher Dodd and the Obama Administration to eliminate restrictions on accredited investors.
BREAKING NEWS: APRIL 22, 2009
The angel investor community had been fighting for its collective life over the past few weeks. Recent news coverage revealed that a major bill on the senate floor entitled "Restoring Financial Stability Act of 2010" would have a dramatic negative impact on angel investing across the country.
The bill, as written, would have redefined "Accredited Investors" at higher levels of income and net worth. The minimum annual income was set to increase from $200,000 to $450,000, and minimum assets would have gone from $1 million to $2.3 million. This may have prevented more than half of angel investors from contributing to these businesses.
Why does this matter? Presently, more than 100,000 angel investors across the country risk billions of their own money to invest in startup businesses. These investors play an important role in funding new businesses and generating jobs. Without angel investor participation in the financial system, thousands of businesses each year would not exist.
It could have been a disaster for investors, entrepreneurs and the economy!
Fortunately for all of us, Liddy Karter of the Angel Capital Association and Matt Nemerson of the Connecticut Technology Council acted swiftly and reached out to Senator Dodd. Together, they convinced him to rescind the restrictive language. A new amendment to the bill will restore the definition of "Accredited Investor" to previous income and asset levels with only a slight modification. (Primary residences can no longer be listed among assets.)
As an entrepreneur and a supporter of the small business community, I would like to personally thank Liddy Karter and Matt Nemerson for their heroics.
To watch our insightful interview with Liddy Karter CLICK HERE.
Liddy has agreed to be a judge at The Perfect Pitch 2010 Conference, and we look forward to seeing her there.
Categories: Columns, Investing & Venture Capital, Small Business & Entrepreneurship
I've received a number of direct messages about this story.
It's good to know that people like Liddy are out there and ready to jump into action to protect the interest of entrepreneurs! I'm also glad that so many people are willing to chip in when necessary.
Thanks for all of the supportive messages!
Requires funding TODAY
I've been to many funding venues: Every single one I've had talks with Angels, they are so upset, mad, livid with VC's
They have considered a Class Action Suit against them.....
If you want to know why - send a direct email to corp@myshield.us
And thank you Liddy!
www.myfamilyshield.us
Any news on the mandatory SEC Filings (120 days to respond before being shipped to a state regulator)?
This had to be done.
Excellent job Liddy and Matt!