WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement on the fifth anniversary of the Jumpstart Our Business Startups (JOBS) Act being signed into law by President Obama April 5, 2012.
“Led by the tireless efforts of former NVCA Board Chair Kate Mitchell of Scale Venture Partners, NVCA played a leading role in pushing the JOBS Act across the goal line in 2012 and the benefits to the entrepreneurial ecosystem have been tremendous,” said Bobby Franklin, President and CEO of NVCA. “From the test the waters provision to confidential filings, there were many positive reforms included in the JOBS Act that have helped to address the risks, costs and regulatory burdens young startups face as they try to take the next step in their growth by pursuing an IPO.”
“If the JOBS Act built the on-ramp for more companies to access the public markets, the next step is to ensure they have a smooth ride once on the freeway. The U.S. now has less than half the number of public companies in the U.S. than we did twenty years ago. We need to make the public markets a more attractive place for companies to not just get to, but to remain,” added Franklin. “We need to rebuild the economics of small-cap company investment, move away from a regulatory structure that encourages short termism and make it less expensive to be a public company. Making sure emerging growth companies have every chance for success once in the public markets is a critical next step and we are eager to work with lawmakers on additional reforms to ensure the public markets are more hospitable to small and midsize public companies.”