The JOBS Act

The JOBS Act (Jumpstart Our Business Startups Act) is a revolutionary development in the world of startup and small business financing. Among other things, for the first time, startups and small businesses can use the power of the Internet to raise equity capital from investors across the country and around the globe. The act allows small companies, including startups, to raise, via crowdfunding (described later), up to $1 million per year, subject to five-year time limit, along with a $700 million market-value limit. For such companies, the act has also created exemptions to accounting and auditing rules, as well as to rules that require public companies to report details concerning executive compensation and other financial data.