New SEC Rules Make General Soliciations Useless. (actual title sensationalistic)

The blog post's actual title is "New SEC Rules Could Kill Angel Investing". But this is not really the case.

The appropriate title for this blog post: "New SEC Rules Make General Solicitation mostly worthless. Carry on with Private Offerings as if it didn't exist."

Smart startup companies raising money will be wise to determine whether or not they want to do a general solicitation given all the limitations ($1M total, disclosure and safe harbor rules) and the access to savvy investors who won't want to provide disclosure among other issues. I see only certain types of companies (the ones who don't have sufficient angel investor connections or capabiltiies) going the general solicitation route. Those who are savvy or have the connections will just stick with private offerings and not bother.

Fred Wilson discusses this more at length here: http://www.avc.com/a_vc/2013/08/some-thoughts-on-the-secs-ru...