November4,2013 ElizabethMurphy,Secretary U.S.SecuritiesandExchangeCommission 100FStreetNE Washington,DC20549 Re:FileNo.S70613,AmendmentstoRegulationD,FormDandRule156 DearMs.Murphy: ThankyoufortheopportunitytoprovidecommentstotheCommissiononyourproposedamendments toRegulationDandFormD.Manyothershaveprovidedyoudetailedcommentsonwhytheproposed rulesareneithersuitabletocurrentmarketconditionsnoralignedwiththegoalsoftheJOBSActthat theyweresupposedtosupport.Iamnotasecuritiesattorney,andrecognizethatmanyofthelegal argumentsintheseothercommentswillhavemoreswaywiththecommission,soratherthanpileonto thosealreadyexhaustiveandaccuratecomments,Iwouldliketotakeamorepersonalapproach. Ihavebeenanaccreditedinvestorwhohasbeenanactiveangelinvestorforover20years.

s.Assuch,Ive madewellover50investmentsinstartupsandhavechairedthelargestangelgroupinthePacific Northwestthathasmadeover200suchinvestments. Angelinvestinghasmovedfromacuriositytoanassetclass.AngelInvestorsareindividuals,scattered acrossthecountryineverymajorcityandtownintheUS,whoinvesttheirownmoney(unlikebanksor VCs).And,tomaketheircompaniessucceed,theymustalsoinvesttheirtime,knowledge,experience, andnetworks.Wedothiswillingly,givingbacktothecommunitiesthathelpusbecomesuccessful, knowingthatontheaverageover50%ofthesestartupswillfailandnotreturntheinvestmentcapital wehavecontributed.Occasionally,oneorourcompaniessucceedswildly,creatingmanyjobsand sometimesawholenewindustry. HereinthePacificNorthwest,asinmanyotherareasofthecountry,theamountofventurecapital financinghasdiminished.AngelInvestorshaveoftensteppedintothebreach,investingbothmoreand forlongerthaninthepast.Theseprivateinvestmentsarenotliquid;weknowthatgoingin.Weknow thatwetypicallyhavetoholdourinvestmentsforover7yearsfromtimeoffirstinvestmentandoften over10years.Theseareriskyinvestments. Sinceweoperateonourown,wedonothavetheinfrastructureofalargefirm.Typically,ourindividual investmentsaresmallintherangeof$25,000to$100,000andthecompaniesareattheirvery earlieststages(whenwecanaddthemostvaluetohelpthemsucceed),raisingonlyafewhundred thousanddollarstogetgoing.Moreoftenthannot,weinvestinasmalltechnologyteamwithagood idea,whohavenotyethiredanyrealbusinesspeople,havenoinfrastructureandareworkingoutofa temporaryoffice.Itisourhopethatthecapitalandtimewecontribute(wearenotpaid;justequity) willhelpthesecompaniesbecomethenextMicrosoft,Google,orFacebook,creatingthousandsofhigh payingjobs. Inordertogetthesecompaniesgoing,simplicityisrequiredinfinancinganddealstructure.Having travelledandworkedinmanycountries,theUSsystemhasbeentheenvyoftheworld.SimpleRegD financingshavebeenthecornerstoneoftheentireassetclassandecosystem.Welearnofasmallteam,

helpthemgetupandrunning,doasimpleandquickfinancing,andthenhelpthemgrow.TheSEC deservesalotofcreditfortheirforesightinthisassetclassandtheFederalpreemptionthathasallowed ittogrowandcreatejobsandcompanies. However,yourlatestrulemakinghasputallofthatinjeopardy.Youhaveproposedasetofrulesthat wouldatbestmakethesefinancingsdifficultandatworstcompletelycrippledtheassetclass.Byasking theproverbial2guysinthegaragetotakeonthesameresponsibilitiesthatyouwouldrequireofan establishedcompanywithonstafflegaldepartmentsandmillionsinrevenueisthedefinitionof insanity.Requiringpotentialinvestorstoturnoverpersonalfinancialinformationtoacompanythathas norealabilitytokeepitsecureisridiculous.Butmostofall,itstrikesmethatyouaretryingtofixa problemthatdoesntexistangelinvestorsknoweachotherandtheriskstheyaretaking.Thereis littleornofraudinthisassetclass. Ifyoudoimposeahostofrestrictionsandlimitationsontheassetclassthatisworkingwellandisnot sufferingfromanyproblemotherthan,perhaps,needingevenmorecapital,youriskcausingthecapital todryupforthesefragilecompaniesthathavedriventheUSeconomy. ThisisexactlyoppositetheintentoftheJOBSAct.And,inmyhumbleopinion,contrarytoournational interest.Weneedmorecapitalgoingintoangeldeals,notless. Pleaseresistthetemptationtocrippleangelinvesting. Respectfully, DanielRosen,CEO DanRosen&Associates Kirkland,WA