What was the primary purpose of the Jumpstart Our Business Startups Act of 2012 (JOBS)?

The primary purpose of the Jumpstart Our Business Startups Act of 2012 (JOBS) was to encourage funding of small businesses by easing securities regulations. This legislation was designed to stimulate the economy by helping small companies access capital more easily. Prior to the JOBS Act, fundraising for startups often faced significant regulatory hurdles that made it difficult for small businesses to attract investments.

By implementing changes such as allowing for crowdfunding, the JOBS Act enabled companies to raise money from a larger pool of investors, including individuals who may not be accredited investors under traditional definitions. This broadened the investment landscape and provided entrepreneurs with more opportunities to secure the necessary funding to grow their businesses.

The act also aimed to balance the need for investor protection with the goal of promoting economic growth by simplifying the process of raising capital, thereby enhancing the overall funding environment for emerging enterprises.