TechNet Applauds Approval of JOBS Act
Washington, D.C. – TechNet, the bipartisan policy and political network of technology CEOs that promotes the growth of the innovation economy, today applauded the U.S. Senate approval of the Jumpstart Our Business Startups Act (JOBS Act), legislation that would make it easier for high-growth firms to raise capital needed to grow.
The legislation has received wide, bi-partisan support in both houses of Congress and included several proposals offered by the Obama Administration. The President has indicated he will sign the JOBS Act into law.
“TechNet strongly supports the JOBS Act because it makes it easier for innovative firms raise the capital they need to grow and create jobs,” said Rey Ramsey, President and CEO of TechNet. “Today, more than 90 percent of job creation occurs after a company goes public so this bill is critically important to help many small companies with big potential to pursue initial public offerings (IPOs). This measure is smart policy because it lifts regulatory burdens and recognizes the need to make America’s capital markets system more accessible for promising, innovative companies seeking to grow. We applaud the work of House and Senate leaders on both sides of the aisle and President Obama for coming together on this important legislation that will help more companies created needed jobs across our nation.”
The legislation (S. 1933) does the following:
- encourages more firms to file initial public offerings by exempting businesses with up to $1 billion in annual revenue from some Securities and Exchange Commission regulations for the first five years after going public;
- enables companies to offer up to $50 million in stock to the public without registering with the SEC, an increased from the previous threshold of $5 million;
- allows small companies selling securities under the SEC’s Regulation D to advertise their offerings, reversing the SEC’s ban on solicitation.
TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet’s members represent more than one million employees in the fields of information technology, biotechnology, e-commerce and finance. TechNet has offices in Washington, D.C., Palo Alto, Sacramento, Seattle, Boston and Austin. Web address: www.technet.org. You can also follow us on Facebook and Twitter at @technetupdate.
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