Jumpstart Our Business Startups(JOBS) Act

The Jumpstart Our Business Startups (JOBS) Act is legislation that was signed into law by President Barack Obama on April 5, 2012, that relaxes the regulations by the Securities and Exchange Commission (SEC) on small scale businesses having less than $1 billion in revenue, by reducing its disclosure and reporting requirements and allowing the public advertising of their securities. Therefore with the JOBS Act, smaller entities could undertake crowdfunding for raising finances without going through SEC registration.

 

Title II of the JOBS Act which came into effect in September 2013 permits the large-scale marketing of private securities offerings. On the other hand, Title III which came into effect in mid-2016, allowed non-accredited investors to participate in equity crowdfunding with some amount of regulations which stated, that businesses can raise a maximum of $1 million within a period of 12 months and non-accredited investors will be subject to investment caps on the basis of their annual income.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.