The JOBS Act, signed into law last week, stands for “Jumpstart Our Business Startups.” So how will the bill directly impact small businesses and start-ups themselves? The Journal’s Angus Loten points to the bill’s support for “crowd-funding,” a way for small businesses to raise money. Under the bill, Loten writes:
Start-ups can raise up to $1 million a year by pitching to thousands of small-dollar investors online with little disclosure beyond a rough business plan. (They can raise up to $2 million if they provide audited financial statements.)
Beyond crowd-funding, the new law eases many restrictions on early-stage business investing that have been in place since the 1930s.
That has some investors worried about fraud. Others see higher costs of capital to offset riskier, later-stage funding rounds as a startup grows.
Loten moderated a discussion on the benefits and risks of the JOBS Act for small businesses. He was joined by William Carleton, a lawyer who specializes in startup financing and sits on the advisory council of the Angel Capital Association’s public policy committee. Read the transcript below.>>> READ MORE at: