US “Jumpstart Our Business Startups Act” about to be signed into law
The New York Times Dealbook has a good overview of the JOBS Act by Andrew Ross Sorkin:
“…a well-intentioned bill with bipartisan support aimed at making it easier for small businesses to find investors early and to continue to grow in the public markets by lowering some of the bureaucratic barriers. It also promotes “crowdfunding,” a mechanism by which entrepreneurs can raise up to $1 million online from individual investors with minimal financial disclosure.
Its goal is noble: start-ups and small businesses are the lifeblood of our economy, and it is hard to argue with helping entrepreneurs build businesses and hire employees.
However, the legislation, in the name of creating jobs, dismantles some of the most basic protections for the most susceptible investors apt to be drawn into get-rich-quick scams and too-good-to-be-true investment “opportunities.””
See also: What is crowdfunding?
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