Frequently Asked Questions

The JOBS Act primarily benefits:

• Small businesses and startups: It gives them access to capital through crowdfunding and simplified public offerings.

• Investors: It opens up investment opportunities to non-accredited investors (those who don’t meet certain wealth criteria).

• Emerging Growth Companies (EGCs): Companies with less than $1 billion in revenue that can access the public markets with fewer regulations.

Equity crowdfunding allows non-accredited investors (people who do not meet wealth requirements) to invest in early-stage companies in exchange for equity (ownership). This provision enables startups to raise capital by reaching a broader pool of investors through crowdfunding platforms.

Regulation A+ allows companies to raise up to $50 million in a public offering without going through a full, expensive IPO. This provision is aimed at smaller businesses, making it easier for them to access public capital markets.

An Emerging Growth Company (EGC) is a company with less than $1 billion in annual revenue. EGCs are eligible for reduced regulatory requirements during their IPO process, including delayed financial reporting and corporate governance rules, which help lower the costs of going public.

Title II of the JOBS Act allows businesses to engage in general solicitation and advertise their private offerings to the public. This means businesses can advertise investment opportunities through various channels, such as social media or online platforms, as long as they only sell to accredited investors.

Under the JOBS Act, both accredited and non-accredited investors can participate in equity crowdfunding campaigns. However, there are limits to how much non-accredited investors can invest, depending on their income or net worth. Accredited investors, on the other hand, can invest larger amounts.

Before the JOBS Act, non-accredited investors (people without high net worth) could not invest in private offerings. The JOBS Act allows these investors to participate in equity crowdfunding campaigns, provided they meet certain investment limits based on their income or net worth.