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MicroAngels privately discuss DPOs with SEC on July 16, 2012 in Washington, DC
Here’s an eyewitness report from the SEC that David Drake and The Soho Loft received last week from a private meeting held by Mark Perlmutter of MicroAngels with the SEC July 16, 2012:
August 8, 2012
PR Contact Donna@LDJCapital.com
On July 16, Founder of MicroAngels, Mark Perlmutter, had a private meeting at the SEC with 7 SEC lawyers invited by one of the Special Counsel lawyers that leads the team drafting rules.
Mark Perlmutter writes July 29 to The Soho Loft:
I shared experiences on three topics:
1 – Lessons learned from the leading crowd funders in Australia and Europe.
2 – How existing DPO laws are perfect for crowd funded startups.
3 – The California experience which allows advertising of intra-state private offerings.
I quoted statistics for Australian Small Scale Offering Board at 2,000 companies raised $125,000,000 in 7 years, with 86% still in business.
I said neither Australia or Europe had unusual fraud problems. So a very light touch on small raises up to $150k seemed appropriate for the US, with increased requirements for larger raises.
Then I explained that DPOs are the next logical funding round for crowd funded startups and showed prospectus examples of completed DPOs.
Several of the lawyers in the meeting eagerly thumbed through these as if they had never seen a DPO prospectus.
Then I talked about the California experience with seasoned law 25102 (n) allowing advertising of intra-state private offerings.
They asked more than 10 questions during my presentation and we ran out of time at the end of 60 minutes.
They thanked me as an interested industry professional for giving them real world data.
From their attentive listening and thoughtful questions, I believe my points will influence the rules they draft.
With luck, their bosses, the SEC Commissioners will accept their recommendations and this will lead to a healthy crowd funding sector.
- Mark Perlmutter, CEO MicroAngels
Mr. Drake of The Soho Loft added to Mark's remarks "We would like to see more groups reach out to the SEC to discuss implementation of the JOBS Act 4 major legislative divisions - that is Regulation A+, Regulation D, exemption 506, Onramp IPO and Crowd Funding Investing. We commend Mr. Perlmutter for taking the initiative and we hope to see more value added groups reaching out."
ABOUT THE SOHO LOFT
The Soho Loft Capital Creation Events "TSL", subsidiary of LDJ Capital, is a world leader in conference speaking and paneling on crowd funding and the JOBS Act (Jump Start Opportunities for Business StartUps) Act signed into law by President Obama April 5, 2012. TSL provides education and leadership to startups, and Small and Medium-sized Enterprises in the areas of capital formation, crowd funding, angel networking, non-conventional funding, eb5 green card programs, microfinance, venture capital, private equity and hedge funds. In 2012 TSL is hosting 60 finance-focused events and expects to double the events to 120 in 2013. David Drake Founder and CEO of TSL co-founded the Crowdfund Intermediary Regulatory Advocates (CFIRA) and is a representative of the U.S. Commerce delegation to Brussels and Rome with European Ministers and legislators. Overall mission is to bring global awareness and develop infrastructure to facilitate countries’ capital formation, innovation and job creation. For more information, visit www.thesoholoft.com.