Though the JOBS act is well known for easing the process for startups to go public, it also gives important benefits for those companies who don’t plan on going public. Particular ways that the act makes it easier for these companies to get funding while remaining private include:
- Relaxing restrictions on private fundraising
- Allowing “crowdfunding”
- Increasing the private company’s maximum number of stockholders
More details available here.
Source: David Westenberg, Xconomy, June 12, 2012.