IPO University
Jumpstart Our Business Startups Act (JOBS Act)
Enacted by Congress in April 2012 to reduce the restrictions on capital raising for emerging growth companies. This rule change also spawned the confidential filing process and Regulation A+ offerings. It wasn’t without drawbacks: startups could go public providing investors with less time and fewer disclosures. The new test-the-waters rule directly contributed to a boom in biotech IPOs. However, the JOBS Act also contributed to a decline in tech IPOs by allowing companies to have a larger private investor base before they are required to be public.