Public Policy Concerns For Startups in 2010

There are at least two significant public policy items of concern for startups as we move into 2010.

  • Senator Dodd’s proposal to repeal federal preemption of state regulation of all accredited investor securities offerings. If this proposal becomes law it will significantly increase the cost of raising capital for startups. For more detail on this proposal, see this attached letter.
  • Senator Dodd’s proposal to increase the financial thresholds to qualify as an accredited investor. If this proposal becomes law, it will also make it more difficult for startups to raise capital. Bill Carleton has written about this proposal, and you can find one of his blog posts on this here.

Let’s hope that 2010 turns out to be a good year for startups. Let’s hope that legal and regulatory changes won’t make life any more difficult for this important part of the economy.