It’s been a whirlwind week in DC for REPP. Yesterday, I had the honor of taking part of a US Department of Treasury roundtable discussing Title II of the JOBS act, which including discussions around Regulation 506(c) Offerings and Investor Verifications.
Members of the Roundtable included startup platforms like Angel List, government officials from the Department of Treasury, The White House and IRS, Law Firms, Hedge Funds Interest Groups, and many more. Each of these groups was very interested in how these new rule changes will affect fundraising and marketing of such offerings.
It was really a great experience to be invited to voice our concerns and thoughts from both a startup perspective, but also as a ID verification and background management platform.
As a startup, these new rules can seem to be a great opportunity to reach out to many new investor bases, but the added headaches, paperwork, and potential issues can potentially cancel out the highly touted upside. Many startup founders already have realized that their plate is full with every type of task imaginable, and if the downside to using general solicitation is so severe (including 1 year bans on utilizing 506) then this great change to fundraising as we know it really is useless for small startups.
From the perspective of a founder of a ID verification and background management platform, we are very interested in the potential ways that REPP can help with the “Accredited Investor” verification as well as the “Bad Actor” clauses. We see REPP potentially providing the platform for accreditation and background checks, as well as the mechanism for sharing and keeping a digital trail of the sharing of such information.
Definitely more thoughts to come as this area grows.
Feel free to drop me a line with your thoughts/perspectives.