The Jumpstart Our Business Startups Act (JOBS Act) , enacted in April, has opened the door to additional fund-raising options for small to mid-sized companies.
One major result is the creation of a virtual IPO on-ramp. This technique encourages emerging growth companies to make initial public offerings (IPOs) of equity shares to raise the funds needed to hire workers and scale up their operations.
The law also expands the use of crowdfunding, private offerings and direct communications to investors to inform them of investment opportunities.
Some provisions are effective now; others are awaiting additional interpretive guidance.
Our latest MHM Messenger explains these new options available to companies and the timetables for issuance of related rules.