Life Science gets a Billion Dollar boost!

When the time is right, the JOBS Act makes it easier for a new class of "emerging growth companies" to go public.  Particularly the life science companies that were waiting in line with the next gen technologies.

Young, high-growth firms are allowed up to five years to comply with certain Sarbanes-Oxley Act disclosures.

The Life Science Sector will boom! with the help of Job Act.

Sarbanes-Oxley compliance is much more onerous for smaller companies than it is for larger entities such as General Electric, Johnson & Johnson or IBM. 

The JOBS Act helps smaller companies conserve resources. It also provides an "IPO On-Ramp" during which time emerging growth companies can protect sensitive information and competitive trade secrets.

To protect investors, the JOBS Act includes an amendment that mandates companies to provide basic financial information to investors before seeking crowdfunding. It also requires third-party intermediaries, in the form of websites managing crowdfunding shares, to register with the SEC. 

The amendment also sets limits on the amount of money an individual can invest to prevent investors from taking too much risk. Individuals with an annual income or net worth of less than $100,000, for example, would be limited to investing 5% of their income in crowdfunding.

Certainly, the JOBS Act is a win for entrepreneurs in America. But it is only a first step. The bill will help innovators reduce burdensome regulation and gain faster access to capital to grow their startup businesses. Immigrants founded or co-founded almost half of the 50 top venture-backed companies in the United States, and on average these companies created 150 jobs.

 This is where it gets interesting. The Universities have hogged funds from the feds and young independent start ups have no or very little access to funds. 
Another way is to make open-technology licensing a condition for universities to receive federal research dollars. Currently, the Bayh-Dole Act of 1980 requires faculty innovators to work through their own university technology licensing offices. This creates significant delays.

To catalyze our innovation economy, we need to increase collaboration between startups and larger corporations. One such example is the NYSE Big StartUp initiative that partners large companies with small businesses to provide corporate assistance with accounting support, legal services, marketing infrastructure and financial training. Small companies often lack resources to take their business to scale. Corporate America can help catapult fledgling entrepreneurs to the next level.

America's competitive position in the world will increasingly depend on our entrepreneurs. The JOBS Act provides momentum.