No one will benefit from a guardian angel that safeguards investors right out of the market, the SEC was told Thursday at a small business forum on capital formation.
A commission proposal to raise the income limit for accredited investors could cast out 60 percent of angel investors, warned Christopher Mirabile, a board member of the Angel Capital Association (ACA) and co-managing director of Launchpad Venture Group.
Such a loss would condemn many biotechs and other small businesses to start-up purgatory, since angels fund the majority of seed and early stage deals in the U.S., enabling companies to move on to venture capital (VC) investments and initial public offerings (IPOs).
In 2012, angels funded nearly 95 percent of all start-up deals, including about 99 percent of all seed/early stage deals and 92 percent of expansion/later-stage deals. Altogether, 268,000 angels invested about $22.9 billion in nearly 67,000 deals, of which