On Thursday afternoon, I will attend the JOBS Act signing ceremony in the Rose Garden at the White House. The Jumpstart Our Business Startup Act passed both the House and Senate with broad bi-partisan support. It is primarily a regulatory reform act and does not address tax policy issues.
For details on the JOBS Act, see my previous post: http://blog.drosenassoc.com/?p=87. This is not a perfect solution. The centerpiece of the legislation is Crowdfunding, which will take some time to implement and many (including me) worry might allow weakening of the security statutes and targeting of those investors who can least afford to lose the money they invest in these very risky startups.
But, the bill also makes many long-needed changes to security regulations that reflect the current market conditions, including changes to advertising and general solicitation and ability for smaller companies to access the IPO market without many of the unnecessary burden imposed by Sarbanes-Oxley and the Dodd financial reform legislation.
All of these changes raise the need for angel investors. Crowdfunding (once implemented) can help get companies going; it augments and replaces friends and family funding. It only gets companies so far. The ones that achieve their milestones will then require the next round of growth capital and this is where either Angels or VCs fit the bill.
I intend to post my observations on the White House event after I attend. And of course will continue to add my insights as appropriate.