JOBS Act

  • Title: Jumpstart Our Business Startups Act (JOBS)
  • Author: Investopedia
  • Source link: https://www.investopedia.com/terms/j/jumpstart-our-business-startups-act-jobs.asp
  • TL;DR: The JOBS act made it easier for startups to raise capital and for retail investors to invest in startups
  • How helpful?: 4/5
  • Topic Tags: JOBS act, fundraising, regulation, laws
  • Relevant questions addressed:
  • What is the JOBS Act
  • Summary bullet points
  • Signed by Obama in 2012
  • Loosens SEC regulations on small businesses
    • Lowers reporting and disclosure reqs for businesses with under 1B in revenue
    • Allows advertising securities offerings
    • Allows greater access to crowd-funding
  • Meant to :
    • make it easier for startups to raise capital
    • make it easier for retail investors to invest in startups
      • Startups can raise up to $1mil from crowdfunding (different from kickstarter, which is essentially a donation platform)
      • Startups can offer up to $50mil in stock each year without having to formally register it
  • Before JOBS Act, only accredited investors could invest in startups