How Angel Investors Survive the COVID-19 Economic Crisis

Author: Dan Rosen To: The Angel Community After publishing my companion piece, “How Startups Survive the COVID-19 Economic Crisis,” I have received a number of comments about how this impacts angels and angel investing.  Here are my thoughts. Unlike VCs, who have a fund to invest and collect a management fee for investing their fund, …

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How Startups Survive the COVID-19 Economic Crisis

Author: Dan Rosen To: All angel investors and their portfolio CEOs Being trained as a scientist, and having lived through several investment cycles, I’ve been asked to share my perspective on the financial impact of the COVID-19 pandemic on startups. I firmly believe that the human and societal impact of COVID-19 will be extreme, even …

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Jet.com – Not ready for Prime time

I really wanted Jet.Com to work. When they announced the service as an alternative to Amazon, I thought that a new kind of competition would be good for the industry. Unfortunately, my experience shows that great ideas and intentions that are not ready for prime time = just a terrible customer experience that appears doomed. …

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Trophy Hunting – I just don’t understand

Like many animal lovers, my first reaction was outrage at the senseless death of Cecil the lion by Walter Palmer. I let my first draft post that reflected my outrage subside into thought – I just couldn’t understand why a successful American dentist would feel the need to take the life of a beautiful African …

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Note to the SEC on Accredited Investor Definition

8 June 2014   The Honorable Mary Jo White, Chairman US Securities and Exchange Commission 100 F St. NE Washington, DC  20549   RE:  Accredited Investor Definition   Dear Chairman White:   As a board member of the Angel Capital Association (ACA) and the Chair of the Seattle Alliance of Angels, I urge the Commission …

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Comment to the SEC

November 4, 2013 Elizabeth Murphy, Secretary U.S. Securities and Exchange Commission 100 F Street NE Washington, DC 20549   Re: File No. S7‐06‐13, Amendments to Regulation D, Form D and Rule 156 Dear Ms. Murphy: Thank you for the opportunity to provide comments to the Commission on your proposed amendments to Regulation D and Form …

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Too Much Complexity, so Tell the SEC

As a rule I live by, “if it ain’t broke, don’t fix it!” The new SEC rules violate that basic principle (see: http://www.startuplawblog.com/ or my previous posts). There is virtually no fraud in the Angel Investing asset class, but the SEC has decided to impose (without a Congressional mandate) stringent new rules that will cripple …

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Why is the ACA making a big deal about the SEC proposed ruling?

I am being asked, why is the SEC proposed ruling such a big issue? Unless you read the entire ruling and get to talk either directly or indirectly to SEC staff, it doesn’t seem like a big issue.  Simply put, the proposed SEC ruling is (a) trying to fix a problem that doesn’t exist; (b) …

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They’re at it again!

The SEC just announced some new rules, based largely on the requirements of the JOBS Act. These rules, on their surface, seem really great. They acknowledge the rise in angel investing by allow companies to seek out angels nationally via “general solicitation.” Unlike Crowdfunding, which allows companies to seek investment from the general public, these …

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Angel Syndication – Regulatory and Legal Framework

Frequent readers of my blog know that I am active in public policy on behalf of angels. They also know that I am a nerd and about as far from a lawyer as you can get. So, they should take this post in that spirit. When angels purchase stock in a startup, they must certify …

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