Companies are seeking new investors using a portion of the JOBS Act that lets small private firms advertise to wealthy individuals, known as "accredited investors," modifying an 80-year-old "general solicitation" advertising ban designed to protect investors.
While the bill was intended to jumpstart small businesses and entrepreneurial firms, the rules allow for use by even large, well established, publicly traded companies. "[A]n unexpectedly broad range of players hope to gain an edge under the new law," Simon said. WSJ reports that between September 23, 2013, and June 30, 2014, more than 1,600 companies filed notices with the Securities and Exchange Commission [SEC] indicating they intended to seek capital under the new rules.
Taking Advantage of New Rules
The SEC was empowered by the Jumpstart Our Business Startups (JOBS) Act to adopt new rules implementing the crowdfunding language contained in the 2012 bill. As those rules have come out, businesses in Virginia have begun to take advantage of new methods for raising capital.
The JOBS Act was welcomed in Charlottesville with a symposium at the University of Virginia School of Law in April 2013, marking one year since the bill was signed into law. Victoria P. Morphy, editor-in-chief of the Virginia Law & Business Review, explained the importance of the JOBS Act to area entrepreneurs:
The JOBS Act has to the potential to drastically alter the landscape of capital formation. It enables crowdfunding, eases the ability of a small company to go public and allows entrepreneurs to advertise to the general public to gain investors.
For more information, Charlottesville's NBC29 has assembled a pleasantly brief, well-written Fact Sheet on the JOBS Act's benefits for Central Virginia businesses. You can learn more from other local entrepreneurs and investors at CBIC's Tech Night Takeover on Thursday, October 2, from 5-7:30 p.m. at Relay Foods. Hope to see you there!
CBIC's annual Tech Tour is all about igniting local students' interest in technology-related careers and showing the variety of opportunities available in our community to pursue their passions. The 2013 tour saw over 400 area students visit 66 technology related companies and organizations in a single day! You can find more Tech Tour info including video highlights @ www.cvilleinnovation.org/tech-tour.
CBIC’s October Tech Night Takeover Event: Storytelling that Creates Buzz and Builds your Business
The Charlottesville Business Innovation Council’s (CBIC) next Tech Nite Takeover event is on Thursday, October 2, 2014 from 5 – 7:30pm at Relay Foods. The event, Storytelling that Creates Buzz and Builds your Business, features a panel of experienced communicators who will help attendees discover the power of story in business. Start ups and established enterprises who want to engage their customers, employees and investors, create brand believers and gain fans, are encouraged to attend.
Ron DuPlain Revealed as CBIC's "Mystery Male" Panelist at Sept TNT Event
Ron is co-founder & CTO of Maternity Neighborhood Inc. which builds maternity care products with the mother in mind. His co-founder and CEO Brynne is featured in the Tom Tom Festival's Founding Cville series. He organizes meetups and supports the annual local tech conference beCamp, and has regularly provided mentorship in people entering the tech field.
2014 - 2015 Total Compensation Survey of Mid-Atlantic Technology Companies
CBIC invites your participation in the Total Compensation Survey of Mid-Atlantic Technology Companies. The 24th annual survey is dedicated to serving the needs of technology firms throughout the Mid-Atlantic region, with a particular focus on small-to-medium companies that are interested in obtaining competitive salary and incentive bonus rates for 44 benchmark jobs, ranging from the Chief Executive Officer to Programmer Analyst, Senior Software Developer, Network Engineer, and Technical Support Specialist. Benchmark job descriptions are provided to assist in making appropriate matches. The survey is the most comprehensive assessment of total compensation practices for technology firms in the Mid-Atlantic region.The deadline for responses is Friday, October 3.