Crowdfunding platforms create self-regulatory body in response to JOBS Act becoming law.

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The Passage of the JOBS Act

On a significant day in history, President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law, marking a major milestone for startups and entrepreneurs. This legislation is designed to promote job creation and economic growth by providing new opportunities for small businesses and startups to raise capital.

What the JOBS Act Means for Startups

The JOBS Act introduces significant changes to the way startups can access funding. One of the key provisions is the elimination of the prohibition on general solicitation, allowing companies to publicly advertise their fundraising efforts. This means that startups will be able to reach a wider audience and attract more investors.

Another important aspect of the JOBS Act is the introduction of Regulation A+, which allows companies to raise up to $50 million in funding without registering with the Securities and Exchange Commission (SEC). This provision is expected to provide a much-needed boost to small businesses and startups, enabling them to access capital that was previously out of reach.

The Impact on Crowdfunding

The JOBS Act also has significant implications for crowdfunding platforms. With the new regulations, these platforms will be able to offer equity-based funding options, allowing investors to purchase shares in companies they support. This is expected to open up new opportunities for entrepreneurs and small businesses, enabling them to raise funds from a wider range of sources.

A New Era for Startups

The passage of the JOBS Act marks a significant shift in the way startups approach fundraising. With the new regulations in place, companies will have access to more funding options, enabling them to grow and innovate at an unprecedented pace.

Quotes from Industry Experts

Rally Software CEO Tim Miller was quoted as saying: "Before the JOBS Act, emerging growth companies were subject to the same stringent regulatory rules as multi-billion dollar corporations like Apple. The JOBS Act will loosen some of these requirements on emerging growth companies, creating a more vibrant and diverse IPO market and allowing companies like Rally to reinvest the money they would have spent on regulatory filings back into jobs."

A New Era for Crowdfunding

The JOBS Act also marks a significant shift in the world of crowdfunding. With the introduction of equity-based funding options, platforms will be able to offer investors a more diverse range of opportunities.

Quotes from Crowdfunding Experts

CAPS CEO Rip Empson was quoted as saying: "There is no doubt that the JOBS Act can have a big effect on later-stage startups on the path to IPO. When asked about the potential consequences, I think it’s safe to say that entrepreneurs and small businesses will be able to access more funding options, enabling them to grow and innovate at an unprecedented pace."

Conclusion

The passage of the JOBS Act marks a significant milestone for startups and entrepreneurs. With the new regulations in place, companies will have access to more funding options, enabling them to grow and innovate at an unprecedented pace.

What’s Next?

As the JOBS Act takes effect, it’s likely that we’ll see a surge in startup activity, with more companies accessing capital and growing their businesses. The crowdfunding industry is also expected to experience significant growth, as platforms offer equity-based funding options to investors.

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