Austin entrepreneurs and investors are hoping that the JOBS Act, expected to be signed by President Barack Obama today, will make it easier for startups to raise money and go public.
The legislation, which was backed by Silicon Valley and the high-tech industry, opens up more opportunities for crowdfunding, in which the Internet is used to solicit a large number of smaller investors.
In addition, it exempts young companies from Securities and Exchange Commission reporting rules to reduce the costs and red tape of raising capital, and will eventually allow smaller companies to carry out initial public offerings sooner.
"It really democratizes the fundraising process by opening crowdfunding opportunities to everybody, not just accredited investors," said Matt Chasen, founder and CEO of Austin-based uShip.com. "At the same time, by reducing expensive regulatory paperwork and processes, it will free up more money for companies to direct toward growth and production, in areas such as engineering and sales." (Read More...)