In April 2012, the Jumpstart Our Business Startups Act, better known as the JOBS Act, was signed into law, receiving bipartisan support. The JOBS Act is aimed at reducing securities regulations for emerging growth companies to help these companies have access to the capital markets. In theory, the Act seems to have a laudable goal:…
Tag: JOBS Act
Citi Faces (a Very Minor) Slap on the Wrist
In response to the financial crisis of 2007-2008, Congress passed the Dodd-Frank Act to bolster financial regulations and monitor Wall Street behavior. Included in the Act were amendments to Rule 506 of the Securities Act of 1933.1 Rule 506 is part of the Regulation D exemption, which allows issuers to raise capital for private offerings….
Fundrise for Everyone
Rise Companies Corporation, also known as Fundrise, acts as a crowdfunding and real estate investment platform based out of Washington, D.C. to promote local investment in real estate developments nationwide.1 Officially founded in 2012 –five years after the collapse of America’s financial and housing markets – Fundrise has put real estate crowdfunding on the charts.2…
(Jump)start Our Business Startups: The JOBS Act 500+ Days Later (Part 2)
Two years, one month, and three days have passed since President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. A product of rare bipartisanship, the JOBS Act was praised on both sides of the aisle as improving access to capital for US small business, which would in turn drive economic growth.1 While…
Crowdfunding’s Intermediaries’ Obligation to Educate
When President Barack Obama signed the JOBS Act into law on April 5, 2012, Section 3(a) of the Securities Exchange Act of 1934 was amended to include a new definition for “funding portal.”1 Funding portals, along with brokers, are the lucky players through which all crowdfunding transactions must be conducted.2 But just how lucky are…
The JOBS Act Seen Through the Twitter Lens
In February of last year, Facebook issued a press release announcing that it had filed the required paperwork for its upcoming initial public offering (IPO) with the Securities and Exchange Commission.1 Shortly thereafter, the SEC published Facebook’s 150-page filing, making it immediately available for public scrutiny.2 Just a few weeks ago, Twitter published a similar…
Should Private Equity Middlemen be Worried? New Rule Could Lead to Emergence of Online Fundraising Platforms
Traditionally, most private equity funds use placement agencies to market, provide access to investors, and sell securities in their funds.1 The resulting relationship between the placement agencies and private equity funds essentially allows powerful agencies to control investor entrance to attractive funds.2 However, several start-up technology platforms have emerged in an effort to provide an…
Twitter’s Bumpy Flight from the Nest: Twitter’s IPO and the JOBS Act
Twitter: An “Emerging Growth Company” On September 12, 2013, Twitter announced its initial public offering (IPO) filing through its own Twitter feed: “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.”1 At the time, this tweet was the “only public…
(Jump)start Our Business Startups: The JOBS Act 500+ Days Later (Part 1)
One year, 7 months, and 6 days have passed since President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. The product of rare bipartisanship, the JOBS Act was praised on both sides of the aisle as improving access to capital for US small business, which could in turn drive economic growth.1 While…
Title II of JOBS Act Goes Into Effect, Creating Exciting New Opportunities for Start-ups
On Monday, September 23, 2013, Title II of the Jumpstart Our Business Startups Act (JOBS Act) went into effect allowing start-up companies to seek equity investments publicly without having to register ownership shares for public trading. Title II is a significant aspect of the JOBS Act, a post-recession initiative to stimulate the American economy, in…