U.S. Representative Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, spoke on the House Floor in support of legislation to reduce compliance costs for small firms seeking capital. The Micro Offering Safe Harbor Act (H.R. 4850), cosponsored by Rep. Royce, reduces the barrier for market entry to firms seeking an investment of less than $500,000 from a small group of investors.
“California is the innovation capital of the world. From Silicon Valley to Orange County, technology startups are reimagining the way that the world works.
These new companies don’t have thousands of people on payroll. They don’t need dozens of floors of office space. They don’t need billions of dollars to function. But they do need access to capital to operate.
Our current regulatory framework creates impediments to these small businesses tapping into the market.
According to the Federal Reserve, the startup rate has fallen sharply over the past 30 years. It was 14% of total companies in a given year but today it’s down to 8%. The likelihood of a young firm being a high-growth firm has also declined over the years. These trends are alarming if you think about the consequences. These trends need …read more
Source:: U.S. Rep. Ed Royce