The Fulbright & Jaworski law Firm put out an excellent newsletter article “The JOBS Act and its Effect” by Gregg J. Berman and Donal Ainscow (linked here by permission). This article really does a good job (no pun intended) in summarizing the bill, soon to be signed by Obama who promised to sign the bill into law on Thursday.
One of the interesting consequences is that the bill requires that the individual soliciting to sell their securities “…must use broker or funding portal“. So, in looking at the funding portals that would be out there right now, I have found:
- PPM Logix – an example of a merchant website that sells access to its bookshelf of legal documents, but also allows individuals and companies who are members (paid to access the library) can list their PPM for other accredited investors. Good idea, well their products are good but being a funding portal is a stretch – not enough qualified investors to make it worth your while.
- Merger Network (website, LinkedIn Group) – this is a website and associated LinkedIn group that provides a great place to list businesses for sale, so solicitations are not a stretch. With over 1,400 active members, the discussions and the businesses listed are a great source of deal flow.
And then there are the full time funding portals and portals to resell restricted securities in private sales:
Earlier in the year, these came up in a search for shares in the Facebook before they announced their upcoming IPO. There had been a robust market for the Facebook shares due to their huge run-up in value.