Founders: Soon, you'll be able to publicly raise money from accredited investors. But the SEC's proposed rules assume you'll be raising money the way institutions did 20 years ago. This means that you will be required to:
Imagine having to notify the SEC in advance and file documents every time you have a new communication with investors, and include boilerplate with every communication. And if you break these rules? Your startup will be sent to "fundraising prison" -- a one year bar from raising any funds.
It doesn't have to be this way. Tell the SEC why these rules are backwards and kill innovation.
AngelList can help you understand the graveness of this issue: https://angel.co/sec
Here's what I wrote to the SEC:
You can fill your comments out in this form, and then for good measure email the SEC commissioners at:
Or if you want to call the SEC, ring them up at (202) 942-8088.
I'll post any responses I get here.
Public fundraising is here! This SEC rule change gives entrepreneurs more flexibility in announcing that they're fundraising publicly, and AngelList is facilitating that process. I'm proud to be an an investor in AngelList! Follow me on my AL profile to get involved in the AngelList community.
This is the first of a multi-part blog post I'll be writing over the next week that will chronicle my experience raising a $1MM round for AppMakr.
I'll be sharing my learning and experiences as a first-time fundraiser out here in the Valley. My goal is to provide pragmatic tips to help other entrepreneurs understand the process and short-cut the time fundraising typically takes. Think of it as download that condenses 4 months of learning into a series of blogs you can read in an hour.
Be sure to subscribe to the blog if you'd like to get those future posts. Also, we're throwing a party to thank the investors who made this round possible, and celebrating the fact that over 1,000,000 people have now used apps made through AppMakr. RSVP here to join us on 10/28 at 6:30pm. You'll meet Mitch Kapor, George Zachary, Pietro Dova, Ben Narasin and other AppMakr investors.
For this first post, I scored an interview with Naval Ravikant, one of the co-founders of VentureHacks, which runs AngelList. AppMakr went through AngelList, and intros from AngelList were responsible for 54.5% ($545k) of the $1MM we raised. Needless to say, these guys rock. I'd also like to give a huge shout-out to my brother Sam Odio and amazing entrepreneur James Hong, both of whom intro'd me to Nivi & Naval of AngelList at the beginning of our fundraising process.
Here's the video with Naval:
During the past two weeks I've waffled back and forth on whether or not to continue to posting daily. Half the time I think it's a great idea, and the other half I'm checking the calendar to see how many more days of this bedtime-extending hell I have left.
Some pros and cons for the writing every day thing: