JOBS Act and Rulemaking by the SEC
Overview: The Jumpstart Our Business Startup Act (JOBS Act) was passed by Congress in 2012 to increase capital available to startups and provide an easier regulatory path for growing companies for successful exits. The act included a variety of initiatives, including an IPO on-ramp, increased maximum for "Reg A" IPOs, allowance of equity-based crowdfunding, and ability for issuers of private investments to use general solicitation to accredited investors.
In July 2013, the Securities and Exchange Commission released two final rules and one proposed rule related to general solicitation - and particularly how investor accredited investor status would need to be verified and the filings and reports issuers would be required to make in solicited offerings. The final rules go into effect on September 23, 2013 and comments on the proposed rules are due on November 4. ACA feels strongly that these rules could put a huge dent in funding and support of the innovative startups that create jobs in America - the exact opposite of what Congress intended in the JOBS Act.
Below are many ACA materials and other resources for all members of the startup community to help understand the issues and to get the word out about their potential harm to the innovation economy:
ACA Guidance of Accredited Investor Verification: What Membership in an Established Angel Group Says About a Purchaser
Tools and Templates for Members for Communication
ACA Messages and Op-Eds
ACA Webinars, Presentations and Webcasts on SEC Rules
The SEC Rules
Some of our Favorite Resources for Angels and Entrepreneurs
ACA's Activity Before the SEC Final Rules were Released (2012-2103)
ACA collected many helpful resources on the issue of general solicitation and "reasonable steps" for issuers to verify accredited investor status:
Below are additional resources on the JOBS Act and its potential implications on angel investors: