Crowdfunding under the JOBS Act

Summary

This practice note provides a general overview of the Jumpstart Our Business Startups Act (112 P.L. 106) (JOBS Act) , specifically addressing how Titles II, III, and IV have fundamentally expanded the options available for companies to raise investment capital, and how these provisions have changed national securities laws. Titles II, III and IV of the JOBS Act are known as the "crowdfunding" provisions that authorize companies to solicit and consummate equity investments from the general public. Prior to this point, such a transaction would have only been permitted through an initial public offering (IPO) , or far less commonly through a Regulation A offering.