JOBS Act: New Law Facilitates Raising Capital

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012, or JOBS Act, became law. The new law makes significant changes to how businesses can raise capital, among other changes described below: 

• Eases IPO process and reporting requirements for emerging growth companies 
• Reduces general solicitation and general advertising restrictions for certain private placements 
• Creates new $50 million small public offering exemption 
• Creates “crowdfunding” private placement exemption 
• Increases the number of shareholders a private company may have without having to publicly report under the Exchange Act

Read the full law alert: JOBS Act: New Law Facilitates Raising Capital