Response to new SEC Angel Rules

There has been a lot of discussion recently on the new SEC rules regarding angel investing. The Angel Capital Association issued a press release Monday discussing the new rules, which in a nutshell, require companies seeking angel investment to ensure that their investors are accredited – possibly requiring the divulgence of personal financial information.

Their full Press Release can be found online at: http://www.angelcapitalassociation.org/data/File/pdf/Release-New_SEC_Rules_Could_Kill_Angel_Investing_Final.pdf

NMA’s President, John Chavez weighed in on the issue today with Albuquerque Business First’s, Dan Mayfield.

“There are so many unknowns,” said John Chavez, president of the New Mexico Angels. “It’s all about people. There will be a certain segment of the population that will log on and pop $100,000 here or $1,000 there, but having a chance to meet with entrepreneurs over coffee, that will continue. It’s about people meeting people and people developing concepts.”

Although watching the SEC rules carefully, the New Mexico Angels do not anticipate that this new ruling will effect any of our investors or investment companies. Read the full article.

NOTE: We have been informed that there is a safe harbor that does not require that type of verification as long as the company seeking funding does not engage in “general solicitation” efforts.

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