What is the Jumpstart Our Business Startups Act (JOBS)?
Minneapolis Minnesota brewery and distillery attorney Jeff O’Brien explains how the JOBS act has enabled equity crowdfunding.
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Phone: (612) 336-9317
The Jumpstart Our Businesses Startup Act, also known as the JOBS Act, was passed in 2012, and it contained – this was the enabling legislation for what’s known now as equity crowdfunding. For years we’ve had what’s called rewards-based crowdfunding like Kickstarter and Indiegogo. And those can raise some amounts of money, but certainly not enough to fund an entire brewery. So with the JOBS Act, the SCC was directed to implement regulations, which they now have done, related to equity crowdfunding so that those non-accredited investors, in fact, some of the folks most likely to want to invest in a brewery now have the opportunity to invest in a brewery or distillery. And then Minnesota just passed its own state companion to that as well. So not – so it makes it easier for new businesses to access capital ’cause one of the hardest things for a new business to do to get started is to be able to access capital.