Emerging Growth Companies (Title I)

• Easing the IPO Process for Startups: The JOBS Act defined “emerging growth companies” (EGCs) as companies with less than $1 billion in annual revenue. These companies benefit from reduced regulatory burdens during the IPO process, such as delayed compliance with certain financial reporting requirements and less strict governance rules. The goal was to make it easier for startups to go public.

General Solicitation (Title II)

• Allowing General Advertising in Private Offerings: Title II of the JOBS Act allows companies to use general solicitation and advertising (like online ads, social media, etc.) to attract investors for private offerings, provided that they only sell to accredited investors. This broadens the reach for private companies seeking investment.

Equity Crowdfunding (Title III)

• Crowdfunding for Businesses: The JOBS Act allows businesses to raise capital by selling equity through crowdfunding. Previously, companies could only raise money from accredited investors (those with a high net worth). The JOBS Act opened up this opportunity to non-accredited investors, allowing the general public to participate in funding early-stage companies. This provides small businesses with access to a broader pool of potential investors.

Regulation A+ (Title IV)

• Streamlining IPOs for Smaller Companies: Regulation A+ allows companies to raise up to $50 million in a public offering without going through the full and expensive process of a traditional IPO. This enables smaller businesses to access public capital markets more easily and at a lower cost.

On-boarding New Investors

• Simplified Investor Process: The JOBS Act allows companies to more easily “onboard” investors, such as by using online platforms, further streamlining the process for both businesses and investors.