BIO.org Supports Obama's JOBS Act - Fair or Foul?

Last week the JOBS Act was passed by President Obama with rare bipartisan support. The Jumpstart Our Business Startups Act aims to ease restrictions on access to investment capital for “Emerging Growth Companies” (EGCs). EGCs are defined as companies that have completed its Initial Public Offering after December 8, 2011, that has less than $1 billion in total revenue. EGCs will be exempt from certain reporting and filing procedures with the Securities and Exchange Commission, be allowed to engage in more aggressive funding solicitation efforts and be able to take advantage of new “crowdfunding” opportunities via Internet investors.

The JOBS Act’s stated purpose is to increase job creation and economic growth by improving access to public capital markets for emerging growth companies. The JOBS  Act relaxes the disclosure requirements for certain companies going public, provides alternative ways for private companies to raise capital and allows some companies to stay private longer. Like everything in Washington these days it has been controversial ranging from cries of Wall Street scams to pro by Small Business here.

Most importantly for our market segment, the Biotechnology Industry Organization (BIO.org) supports the legislation here in their article:

"The JOBS Act: Critical Support for Today’s Emerging Biotech Company"

BIO.org is the world’s largest biotechnology organization. BIO is a 503c non-profit organization headquartered in Washington, D.C. They provide advocacy, business development, and communications services for more than 1,100 members worldwide. Members are involved in the research and development of innovative healthcare, agricultural, industrial and environmentalbiotechnology products. Corporate members range from entrepreneurial companies developing a first product to Fortune 500 multinationals.