What Is The American JOBS Act?

The JOBS Act (Jumpstart Our Small Businesses) is a piece of legislation that covers many aspects of private company investment, from small startup raises to public IPOs. It was designed to jumpstart small business funding and job creation by allowing all Americans to invest in private small businesses.

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President Obama signed the JOBS Act into law on April 5, 2012.  Over the subsequent years, the Securities and Exchange Committee (SEC) has put rules and regulations governing the JOBS act into place, and most portions of the JOBS Act are now in effect.  Title III of the JOBS Act, which went into effect in May 2016, is most relevant to online startup investing. Title III permits unaccredited investors to invest in startups via online crowdfunding platforms, subject to certain rules and regulations.

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the JOBS Act was intended to encourage the funding of small businesses by easing many of the country’s securities regulations. The JOBS Act allows for everyday folks like you and me to invest in startups as angel investors. This angel investing or early-stage investment opportunity used to be restricted and for institution or accredited investors only, which were wealthy individuals or institutions. The JOBS Act eliminated the restrictions and now you too can invest in startups and become an angel investor or the beneficiary of early-stage investing.