The JOBS Act (Jump start Our Business Act) which was passed in April of last year has seen little to no effect on benefit for those respective channels of small business finance. This can be seen as an outcome of the unforeseen delays that the JOBS Act encountered recently. The only exception to the JOBS Act’s slow start is the success of the IPO (initial public offering) Market. The pace for IPO’s has shown noticeable improvement over last year.
In the first three quarters of the year, there were 158 U.S. IPOs that raised more than $35 billion in capital. This amount has already surpassed all of 2012 and a 58 percent increase over the first nine months of last year. There are of course multiple factors affecting the improved IPO market including an improved appetite for risk by investors.
Of the 158 IPOs in 2013, 84 percent of those IPOs fall under the category of “Emerging Growth Companies” or EGCs who have less than $1 billion in annual revenue. EGCs were authorized under the JOBS Act to file their disclosure documents on a confidential basis.
- THE EY, a global leader in assurance, tax, transactions and advisory services, compiled a list of information to analyze trends among those emerging growth companies that have gone public this year.