Emerging Growth Companies Under the JOBS Act: An Analysis of the “IPO On-Ramp”, 3 J. Marshall Global Mkt. L.J. 63 (2014)

Since 2008, the United States has been faced with a “jobless recovery” which can be attributed in part to a decline in new business creation. To study the link between small companies’ access to markets and creation of jobs, the IPO Task Force was created. The IPO Task Force conducted research and set forth various findings regarding the correlation between emerging growth companies and job creation. The IPO Task Force also attributed a decline in IPO activity to the complex regulatory environment. Accepting these findings, and in response, the JOBS Act passed with surprisingly high bipartisan support. The JOBS Act incorporated certain reduced regulatory barriers including, but not limited to, the special designation of “emerging growth company” status, reduced disclosure and accounting requirements, as well as increased access to reports, and confidential review of draft registration statements. This Article conducts further in-depth analysis as to these standards. In addition, this Article presents varying opinions as to the JOBS Act, as well as research conducted as to its effects. This Article concludes that the research presented thus far yields mixed results, but remains optimistic that the promise of a growing economy, coupled with the passage of time, will determine the effectiveness of the JOBS Act