The Jumpstart Our Business Startups Act or JOBS Act, is a law that was passed on April 5, 2012 with bipartisan support to encourage funding of startups and small businesses in the United States, especially through crowdfunding. The law was signed by President Obama and will make funding more accessible for startups by allowing non-accredited investors to participate in the early-stage funding of businesses for an exchange in equity ownership in their company.

The JOBS Act will make the process of going public more readily available and financially affordable for companies than ever before. By allowing startups and companies to raise money, which they would not have normally been able to do, they will be able to expand and hire more employees. Small business in American make up 75% of all jobs , so providing a way for these companies to raise funds and effectively go public, will create more jobs and foster growth in America.

Currently, the SEC is working on developing the rules and regulations that businesses, investors, and crowdfunding portals will need to follow. The SEC has a total of 270 days to implement these regulations and they should be set sometime in the beginning of 2013.

As of right now, StartupValley is preparing for the launch of the JOBS Act and has developed a beta site to allow investors to join in on the next big “game changer.” Startup Valley is working around the clock developing an equity-based crowdfunding portal that will allow tech startups and businesses to post their company, product, or next great idea for the crowd to invest in. Investors will then be able to invest in the company and receive an equity ownership in exchange for their investment. For more details on how this all works, visit our FAQs.