WASHINGTON, DC – Angel investors seem to have what everyone on Capitol Hill craves these days: bipartisan support. The Senate passed an amendment to the financial reform bill Monday night that keeps requirements for angel investors much as they are now, eliminating changes opposed by venture and technology lobbying organizations.
The amendment, sponsored by Senators Chris Dodd and Kit Bond and co-sponsored by Dems Mark Warner, Maria Cantwell and Mark Begich and Republican Scott Brown, dumps a provision that would have required a 120-review of Angel investor deals.
A PE Hub commentator, in a before and after look at the amendment suggested that the whole fracas over the provision may have just been “political theater,” put in the bill just so legislators could give lobbyists something they wanted by taking it out.
Angel investors also will not have to change how or who they file to on their transactions.
The reform bill does include a “bad actors” provision that goes into effect in a year. It forbids anyone with a criminal record or who ran into trouble with state regulators from being involved in securities offerings for a decade.
“We are very pleased that this amendment was adopted,” said Liddy Karter, chairman of the Angel Capital Association public policy committee and a founder of the Angel Investor Forum of Connecticut. “It ensures that entrepreneurs will more easily be able to raise angel capital and more accredited investors can continue making the angel investments they love to make.”
We’ve covered this story in some depth previously.
See also:
Angel Capital Association resources on federal policy
Venture capitalists, angel investors get hope on financial reform bill changes
Amendments to financial reform bill expected
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