Angel Capital Association Delivers “Wish List” to Trump Transition Team

The Angel CapitaI Association, the world’s largest professional organization of accredited angel investors (the “ACA”), has delivered a letter to President-elect Trump’s transition team outlining specific policy steps the new administration should take to encourage job creation and support investment in startup companies. The ACA specifically recommends retaining the existing income and net worth definitions for accredited investors; creating a new safe harbor for verification of accredited investor status via an investor’s membership in an established angel group like the ACA; expanding the 3(c)(1) “100 holders” Investment Company Act exemption to allow up to 250 investors for funds up to $10 million; exempting “demo day” events from the category of “general solicitation” under Rule 506(c); expanding the scope of Section 1202 of the 2012 American Taxpayer Relief Act to cover LLCs and to decrease the holding period on investments in Qualified Small Business Stocks from 5 to 2 years; and continuing current tax treatment of carried interest for angel and VC funds under $25 million.

For more information on the ACA’s regulatory reform proposals, click here
To download a copy of the ACA’s letter, click here

For more information regarding the matter discussed and how it could affect your business, please contact your attorney at Fox Swibel.