SEC Lifts Ban on General Solicitation in Certain Private Placements: What Does it Mean for Entrepreneurs?
On July 10, 2013, the Securities and Exchange Commission finally implemented one of the key provisions of the JOBS Act by adopting amendments to Rule 506 of the Securities Act of 1933 and eliminating the decades-old ban on general solicitation and general advertising in certain private offerings (in other words, in a sale of securities of a company that is not publicly traded).
What does the Jumpstart Our Business Startups ("JOBS") Act Mean for Private Investment Funds?
The JOBS Act was signed into law by President Obama on April 5, 2012. Although the primary effect of the JOBS Act is to ease certain regulatory requirements on emerging growth companies (see here and here), we highlight below two key provisions of the JOBS Act that are particularly relevant to managers of private investment funds.
The JOBS Act Relaxes Requirements For Going Public And Being Public
On April 5, 2012, President Obama signed into law the Jumpstart Our Business Startups Act, which goes by the deft acronym of the "JOBS" Act. As its stated purpose, the Act is designed to increase job creation and economic growth by improving access to the public capital markets for emerging growth companies. Whether it will accomplish that goal remains to be seen.
The JOBS Act (Jumpstart Our Business Startups Act) - What Does It Mean for Entrepreneurs?
On March 27, 2012, the House passed the JOBS Act, as amended by the Senate on March 22, 2012. President Obama signed the bill into law on April 5, 2012.
The JOBS Act substantially changes a number of laws and regulations in a way that is designed to make it easier for emerging companies to raise capital privately and stay private longer. The Act also is designed to make it easier for companies to go public and reduce regulatory burdens on certain newly public companies. We highlight below key provisions of the JOBS Act and what they mean for entrepreneurs.