Securities and Exchange Commission rules intended to make it easier for startups to attract investors could create obstacles for angel investors. The rules allow startups to openly solicit investors but require them to verify that investors have either an annual income of more than $200,000 or a net worth of more than $1 million. "I have not talked to any angel who would want to provide any of their private financial documentation to an entrepreneur," said Marianne Hudson, executive director of the Angel Capital Association.

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