The JOBS act is good news for entrepreneurs and venture investors in several ways. An easier the path to public markets for start-ups is a huge strategic win, as the venture community’s biggest problem has been a shortfall in exit proceeds. Kudos to those in Congress, NVCA, and the venture community who made this happen.
The most interesting feature of the JOBS act is legalization of “CrowdFunding”, which allows private companies to raise capital from any investor (not just deep-pocketed “accredited” investors) subject to simple rules: no more than $1 million per year, no more than $10,000 or 10% of an investor’s annual income or net worth. (However, the SEC will make more rules.) And, the JOBS act authorizes companies to solicit investments from the public via typical marketing channels. Previously advertising and other broadcast marketing was strictly prohibited; companies could only solicit investments from people with whom they had a relationship or an introduction. Let’s explore what this means for the venture community.
To read the full, original article click on this link: Is CrowdFunding A Boon, Or A Disaster? - Forbes
