From The St. Louis Business Journal
by Amir Kurtovic
Aug. 22 is an important date for entrepreneurs and investors alike. That's when the Securities and Exchange Commission is set to take some kind of action on key provisions of the Jumpstart our Business Startup (JOBS Act) law, which was one of the only pieces of legislation signed into by by President Barack Obama to receive bipartisan support this year.
While there are many provisions in the JOBS Act, one of the most significant changes in the law would allow companies to advertise fundraising rounds to investors, said Andy Hoyne, a Polsinelli attorney who specializes in life sciences, securities law and venture and private equity capital.
"There's a big paradigm shift in what's going on,"Hoyne said. "In the past when companies had to raise money it had to about about who you knew and contacts and maybe angel networks."
The JOBS Act is supposed to change that. Instead of having to rely on family friends and private investors, the new legislation would allow companies to advertise for investors in newspapers or online portals that many expect will be established to organize securities offerings.