Pittsburgh Business Times - April 20, 2007
by Patty Tascarella
A plan to protect investors could put the pinch on fundraising.
A new U.S. Securities and Exchange Commission proposal, rule No. S-7-25-06, would raise the minimum net worth of accredited investors from the current $1 million to $2.5 million for pooled investments.
The SEC said the rule is intended to protect investors from high risk vehicles like hedge funds. But many in Pittsburgh’s private equity community fear it will hamper funding for young companies. Angel or equity investments are also pooled.
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