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Just discussed this bill with the head of a mid-size investment bank today. The crowd funding provisions are not really that important. He said that the most impact will be the reduction of disclosure requirements for emerging growth companies enabling them to raise up to $50 million rather than just $5 million.

It will mostly be institutional investors buying into even smaller size IPO shares -- these are savvy investors and the mania of the dot-com bubble has certainly not been forgotten.

The thing is there isn't really a huge market for these deals at the moment -- his bank specializes in deals of this size and I asked him if he thinks more mid-range banks will popup to serve this market and he said that probably not until the deal flow comes in.




Can you disclose the bank?

The JOBS act really helps my company -- we're too far along for VC, but not far enough along for a public IPO. The post-VC, private equity market makes the most sense, but as you noted, the amount of money you can raise that way pre-JOBS act is far too low, making companies like mine (Pixar for live-action filmmaking) either at the mercy/generosity of a Steve Jobs-like figure (literally), or simply not funded at all since we exist in the Government-created financial no-mans land. Either is far from ideal.

The JOBS act, at least for our company, changes this and makes a previously non-viable-through-inadvertent-regulation company suddenly viable. That's why I supported it, and continue to do so.


I don't want to post on a forum but send me you email and I can connect you.


Thanks! My email is eocean@fohr.com.




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