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The Jobs Act: Good or Bad for Healthcare Startups?

  
  
  

On April 5th, President Barack Obama signed the Jumpstart Our Business Startups Bill.  TheCrowd Photo crowdfunding provision of the bill could mark a new era for startups and make it easier to procure funding from new investors to early and later-stage health care companies.

According to an article in MedCity News, not everyone shares this view.  Some investors believe that with less rigorous regulatory check and balances on company finances, the risk of investors getting burned increases.

The article has three individuals from the investment community share their thoughts.  Here is a brief recap: 

• Be careful for what you wish for:  The risk of novice investors getting burned by bad investment choices could have a negative impact on all the crowdfunding money the act is designed to generate.
• There will be winners and losers:  Some firms will benefit, while some will fail.  Despite the new legislation, launching startup will remain a “crapshoot.”
• It will remove barriers that stymie growth for small businesses:  The new legislation will help remove barriers that made it hard for startups to go public.

The well-intended legislation continues to generate both positive and negative comments.  What is your opinion of the The Jobs Act?  Please share your thoughts.

Photo Credit: Kheel Center

Comments

Folks, It's a start. My guess, it will be a year before the Securities and Exchange Commission (SEC) will come out with the rules of engagement. 
 
 
 
Platforms will open up, some with long historical credentials and some not. 
 
 
 
My feeling is that the investment package will be a large pack of documents delivered, letting the unsophisticated investor time to think about his investment potential, it will require signatures on disclosures forms stating that he/she will most probably lose the investment dollars, etc.  
 
 
 
But, with all said, we should embrace the architects that have the foresight of pushing for legislation, allow people to take an informed risk. We need to embrace and recognize that the entrepreneur and visionary need private risk takers to explore the potentials.
Posted @ Sunday, April 15, 2012 4:33 PM by Ralph Stokes
Thanks for your comments.  
 
 
 
What are some “rules of engagement” you hope to see the SEC establish?
Posted @ Tuesday, April 17, 2012 1:48 PM by John Lehmann
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