Discussing the JOBS Act’s Impact on Capital Flow in the U.S. Market
Monday, March 17, 2014
Much of the focus on how the JOBS Act may be able to transform the flow of capital in the United States has been on new pathways being opened. Equity crowdfunding, crowdfinanced debt, locavesting, the new opportunities for accessing capital outside of the traditional banking system has sparked the imagination of many.
However, many active participants in the traditional capital markets are equally as excited about the potential for change. While traditional investment banks don’t seem to think crowdfunding is going to change much, and the sort of small-term locavesting has always existed off their radar, the changes to the rules for private capital raising stand to make things much easier for companies raising capital through traditional routes as well.
The chance to have more shareholders, to solicit accredited investors, and eased rules on IPOs mean investment banks like ROTH Capital Partners have as much to look forward to as small businesses turning to their communities to fund expansion.