- 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