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Honorable Mark Sanford

Representing the 1st District of South Carolina

Vote Notes: H.R. 1219, the Supporting America’s Innovators Act

Apr 7, 2017
Blog Post

As a good many of you know, growing a garden goes well beyond just planting seeds. The same notion also applies to starting a business. In that vein, the House passed a bill yesterday to make that process just a little bit easier. H.R. 1219, the Supporting America’s Innovators Act, would

increase the number of people allowed in groups that invest in startup companies without facing additional federal regulations. The bill passed by a vote of XXX to XXX. I voted “yes,” and I wanted to offer some thoughts as to why….

You may have a great idea and all the enthusiasm in the world, but if you don’t have the resources upfront to get it going, you’re not going anywhere. Towards that end, one of the ways of getting connected with the capital you need is through venture capital firms - small groups of individuals who get together and invest in startups that they believe have a high potential for growth.

Currently, the Securities and Exchange Commission (SEC) has fewer regulations and reporting requirements for venture capital firms with 100 or fewer members. This bill would simply increase that number from 100 to 250.

One of the hallmarks that makes America great is that people get to choose what they do with their own money and what risks they take. Venture capitalists are for the most part wealthy and sophisticated investors...they’re fully aware that 8 out of 10 startups fail within the first 18 months, and I don’t think they need the government looking over their shoulders.

Given the fact that new business creation is at a 40-year low, I think this bill will help strike a better balance between free markets and the federal government’s role in protecting consumers. Accordingly, I voted “yes.”