The JOBS Act creates a new world in which companies can offer their stock to private investors generally through public advertising. While in the past a vast web of federal and state regulations have made it expensive, time consuming and difficult to raise capital, that is no longer the case.

1. JOBS (Jumpstart Our Business
Startups) Act
Presented By:
Mark Smallhouse & James Kalicki
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2. Funding Overview
 Generally the most important factor in the success of
a company
 Generally the most difficult task to accomplish
 Generally the most confusing aspect of business
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3. Traditional Funding
 Savings
 Friends and Family
 Loans – Traditional Vs. SBA Funding
 Private Equity
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4. New Developments
Traditional Crowd Funding
JOBS Act
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5. JOBS Act
 Jumpstart Our Business Startups Act
 Goal is to make it easier for smaller businesses to raise money
 New regulation for equity crowd funding (not effective yet)
 More relaxed restrictions on SEC Rule 506 (currently effective)
 New Regulation A+
 Provides On-Ramp for IPO’s
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6. Important Terms
Accredited Investor:
 A natural person who has individual net worth, or joint net worth with the
person’s spouse, that exceeds $1 million at the time of purchase, excluding the
value of the primary residence of such person; or
 A natural person with income exceeding $200,000 in each of the two most recent
years or joint income with a spouse exceeding $300,000 for those years and a
reasonable expectation of the same income level in the current year.
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7. Important Terms
Qualified Institutional Buyer:
 Institutions that manage at least $100 million in securities including banks,
savings and loans institutions, insurance companies, investment companies,
employee benefit plans, or an entity owned entirely by qualified investor.
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8. Crowd Funding
 $1 Million per year
 5% - 10% of Net-Worth
 1 year transfer restriction
 Required disclosures
 Reduced financial information
 Sales though Broker/Dealers of funding portals
 Private right of action-enforcement
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9. Rule 506
 No dollar limitation
 Repeal of ban against solicitation and advertising
 Up to 2,000 investors before registration
 State law preemption-no annual federal filing
 Limited private right of action for fraud
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10. Reg A+
 Does not replace current Regulation A
 $50m per year limitation
 Offering Circular required to be filed
 Annual financial reporting
 Private right of action for negligent misrepresentation
 Impact questionable
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11. Where Does That Leave Us?
 Crowd Funding in the news
 Action will be in 506 Arena
 No deficit of imagination
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12. How Nevantage Works In Your Favor
 Accredited Investors residing in high-tax States
 Nevada Corporation (higher net profit)
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13. Q&A
Join us next month on
WEDNESDAY, OCTOBER 24th
as we discuss:
“CORPORATE LEGAL AUDIT:
Managing Legal Costs”
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14. Thank You!
Copies of today’s presentation can be found online at:
www.slideshare.net/Nevantage
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