The JOBS Act was signed into law April 5 by President Obama. And it could help open an entirely new class of investor to a process they largely have been held out of, speculates an expert at Washington University in St. Louis.
"There's an interesting cultural shift happening with the passage of this bill," says Clifford Holekamp, senior lecturer in entrepreneurship at Olin Business School. "Traditionally, private equity investing was only for the wealthy," he says. "You had to be an accredited investor to be marketed to for private equity investment in an entrepreneurial firm. As such, an entire investment class was excluded. With this bill, the angel investment community will be opened up to a much broader audience."
Do you agree?
Re: JOBS act hmmm
impactnow
3/22/2012 12:38:05 PM
Sherri really interesting stat on IPOs and job growth is there any supporting data about job stability at these companies is it a hiring frenzy that subsides or results in layoffs or is it more of a long term trend?
I believe Jay Ritter but I also believe it's really important to reform Sarbanes Oxley as to me it has added additional regulatory and cost burdens to smaller companies.
Also, as I've said before, these huge regulatory overhauls are reactive rather than proactive and will not stop fraud. It's how the government works -- react to a past crisis, introduce all sorts of legislation, but the criminals and scam artists have by then moved on to something new. The cockroaches always find new cracks.
Take a look at Bernie Madoff which was exposed years after Enron. Proof that the government is pretty incompetent at ferreting out fraud -- even when they are given the proof!
The Senate is expected to vote tomorrow, March 20.
Re: JOBS act hmmm
driven
3/19/2012 9:20:02 AM
When is the Senate vote scheduled?
Re: JOBS act hmmm
driven
3/18/2012 12:26:24 AM
There are a lot of reasons for the lag in job creation, and fewer IPOs is just one. What about the issues created by our patent system? I think patent reform could go a long way toward encouraging entreprenuership.
That may be true, but that only applies to the VC backed firms. There are plenty of other privately held companies that are/were funded by other sources, and they seem to do OK in the job creation process.
The National Venture Capital Association estimates 92% of the job growth in venture-backed companies occurs AFTER their IPO.
Expediting and reducing paperwork world be good if we do not sacrifice diligence. As we have seen in some of the recent IPOS the financial are questionable at best leaving investors to wonder. This could spell a clear and present danger to market stability.
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