Ask AI

Imagine a world where anyone can invest in the next big thing, not just the wealthy elite. Where founders can freely share their exciting ideas for investment, and early employees can actually sell their startup shares without jumping through endless hoops. 


Right now, outdated US government rules are blocking millions from participating in venture capital – the very engine that helped build companies like Apple, Google, and SpaceX. These rules were written decades ago, allegedly to "protect" people, but they're really just keeping opportunities away from most of humanity. 

What needs to change: 

  • Kill the millionaire rule: Why should you need a 7-figure bank account to invest in the next big thing? (Rule 501 - Accredited Investor Definition)
  • Let founders tell their story: End the ridiculous ban on founders publicly discussing their startups (Rule 506b/c - General Solicitation)
  • Free startup shares: Stop trapping employee equity in golden handcuffs (Rule 144 - Holding Periods)
  • Break down the barriers: Why should artificial limits stop people from investing what they can afford? (Investment Company Act Sections 3(c)(1) & 3(c)(7))
  • Make transparency the shield: Real-time disclosure protects investors better than outdated investment restrictions (Form D Requirements)
  • Build the future of trading: It's time for private markets to work as smoothly as public ones (Securities Act Section 4(a)(7))

Many rules need to change, and the timing is perfect. Leaders like Elon Musk, David Sacks, J.D. Vance, and Paul Atkins understand startups and can help reform these rules. This could unleash the biggest wave of innovation and wealth creation in modern history – and this time, everyone gets to participate.
 

💡 What rules would you change?


Let's build a list of outdated rules that need to go and propose better alternatives.
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7 replies
Direct Tax deductions for angel and venture capital investments to support the innovation ecosystems like Malaysia has set up - For example if an angel investor invests 200k MYR in a startup he/she can deduct directly 100k MYR from taxable income after two years holding the equity, with up to 500k MYR deductible per year. 

(indeed granted that accredited investor status evolve in the US not to be a new way for a handful of rich individuals to pay even less taxes than the rest of the population)
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It would be great if holding periods for tax benefits could start at the time of a convertible note or SAFE financing.
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That's a great list Adeo, let me know how to help! Little ole Louisiana does have both the Speaker of the House and the Majority Leader. How about a Decile Group D.C. Fly-in in 2025, nothing works better than actually meeting with members of Congress (mainly their staff) with a list of priorities...
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@John Roberts
 I had on my list to streamline and simplify SSBIC...especially the back and forth and reporting reqs I've seen. More thoughts to come ;)
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Tuesday, December 10, 2024
Great opportunity for implementation of Adeo's mensarius oath. Commendable lists  to foster positive change in the VC landscape. We live in exciting times and 2025 will birth exponential jaw dropping overhaul in the VC industry.
Great list Adeo! I would love to see some ability for LPs who have commitments below the standard $250K to participate in more funds. Example - For someone with a network of $1M to $2M, $250K is a large slice of the pie to dedicate towards a single fund. Perhaps if some of the regulatory and admin. rules were relaxed more GPs would be willing to take on the right LPs at lower amounts if it were economical. 
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