Monday, April 5, 2010

More Derring-Do From Dems' Little Shop of Horrors

Entrepreneurs and employees take note: this news about new restrictions on startup businesses (if you can find anyone starting up businesses--aka employers--in the current climate) will grab your attention. Via Pundit and Pundette:
Angel investors don’t usually stay up at night worrying about Capitol Hill. But a financial reform bill proposed by Chris Dodd, the Democrat chairing the Senate Banking Committee, includes new restrictions on startups and angels.
Not surprisingly, investors aren’t happy about it, saying it’s “insane,” “frankly ridiculous,” and aims to “destroy Silicon Valley.”

There are three changes that should have a particular effect on angel investors, a catch-all category which includes everyone from friends and family members who invest in a startup, to unaffiliated wealthy individuals, to side investments made by venture capitalists acting on their own.
Oh, those people. The ones who invest in new technologies hot off the computer or fresh from the university laboratory, as the case may be. 
First, Dodd’s bill would require startups raising funding to register with the Securities and Exchange Commission, and then wait 120 days for the SEC to review their filing. A second provision raises the wealth requirements for an “accredited investor” who can invest in startups — if the bill passes, investors would need assets of more than $2.3 million (up from $1 million) or income of more than $450,000 (up from $250,000). The third restriction removes the federal pre-emption allowing angel and venture financing in the United States to follow federal regulations, rather than face different rules between states.
According to Keith Rabois, “Anyone still need more evidence that Obama and the Democrats intend to destroy Silicon Valley and the dreams of entrepreneurs?”

Nope, nope, nope. Congress can't be letting new technologies escape into the free market. Who needs another Apple, Microsoft, Google, or youtube?

Apparently not Democrat politicians. Why would they? Silicon Valley makes possible enormous exchanges of information, like this little post about Connecticut Democrat, Chris Dodd. By the way, remember not to vote for Chris Dodd if you just love your little iPhone with all those cute and handy apps, and I know that you do. (My bad. Dodd has already decided not to run for re-election, reportedly. I guess he knew your phone call would be coming.)

Update: But you can use that iPhone to give Dodd a call and tell him what you think about not being able to get a job in a new tech company because he doesn't want too many people to invest in startups.

Washington : (202) 224-2823 | Hartford, CT: (860) 258-6940

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