The Obama administration passed the Jumpstart Our Business Startups (JOBS) Act into legislation in 2012. Two years later, the JOBS Act has been amended several times and the market for IPOs has seen some stark changes in the right direction as a result.

Accessible Capital Ventures

The JOBS Act in its initial form legalized equity crowdfunding in an effort to create more jobs. The legislation allows individuals to invest in start-up companies in exchange for equity. This act was designed to foster growth of start-up companies and create more jobs for young professionals. Furthermore, entrepreneurs were given new outlets to fundraise for their budding enterprises.

Last summer, the Securities and Exchange Commission (SEC) added an amendment to the JOBS Act. Title II removed an eight-decade-old ban on general solicitation or advertising for private enterprises that were not formally registered with the SEC.

By requiring the SEC to remove this general solicitation restriction, Congress sought to make it easier for a company to find investors and thereby raise capital.

The success of many companies depends on the timing of their first public sales. When the JOBS Act made it possible for companies to conduct their initial paperwork behind closed doors and control the time of their public announcement, many new companies jumped on the bandwagon.

In 2013, the number of initial public offerings (IPOs) increased by 70 percent. The biotech industry has seen an incredible boom thanks to the JOBS Act. Biotech investors and CEOs of emerging companies are pushing for further legislation to make access to capital easier so they can focus on breakthrough developments and treatments for HIV/AIDS, cancer, and diabetes.

Jumpstarting Young Professionals

What does all this mean for young professionals eager to launch their own business ventures? With more control over IPOs and easier access to investors, Millennials are more likely to land investors. Rather than depending on one main investor, emerging companies can acquire several smaller investments from various investors.

For Millennials, perfecting the art of investor relations will be a key component of their start-ups’ success. Young business proteges interested in the tech or biotech industries have lots of room to grow and should start creating connections with investors.

Title III of the JOBS Act opened up the opportunity for companies to crowd investing. Individuals who invest online into private companies do not have to be accredited, though there are certain limitations set for these individuals. For example, a potential investor with an income below $100,000 can invest at most 5 percent of his or her income or net worth.

For Millennials who are interested in launching a company in an emerging market and seeking private investors, websites like RealCrowd exist. RealCrowd is an investment website dedicated to the real estate market.

Lastly, it’s imperative for start-up companies to get to know their investors. The JOBS Act allows for emerging growth companies to learn their investors’ motives and style. Because IPOs are now private, companies can back out of deals without public backlash.

The market is ripe for start-up companies – not only do they stimulate the economy, but they also create job opportunities. The JOBS Act benefits job seekers, entrepreneurs, and investors and makes it easier for start-up companies to become successful.

Natasha Paulmeno

Natasha Paulmeno is an aspiring PR professional studying at the University of Maryland. She is learning to speak Spanish fluently through travel, music, and school. In her spare time she enjoys Bachata music, playing with her dog, and exploring social media trends. Contact Natasha at staff@LawStreetMedia.com.

The post How Does the JOBS Act Help Millennial Entrepreneurs? appeared first on Law Street.

My boyfriend and I have been binging on The Food Network lately. The show Restaurant: Impossible, to be exact. It’s amazing. The perfect combination of food and drama. Maybe it’s the fact that we’re both trying to be better about food (resolutions blah blah blah) or maybe we just get some ridiculous satisfaction out of watching a guy with a faux pretentious accent yell at people about garnishes. Whatev. It’s our thang. Don’t judge.

But in all seriousness, the show did get me thinking. For those of you who haven’t seen it, here’s a synopsis: Robert Irvine is the host and an executive chef who roams around the country saving restaurants that are about to shut down. It’s great. There are tears at the end. But anyway, I was really shocked at how some of these businesses were being run, and the reasons that the owners were finding themselves in this impossible (pun intended) situation. There was literally an Italian restaurant that ran out of pasta. There was another place that only served canned food. All of the owners were disgruntled and close to personal and financial ruin.

The restaurant biz aside, there are lessons to be learned here. I write about startups and going out on your own. I write about how many great kickstarter and crowdfunding opportunities there are now. But today we’re concentrating on the basics. You might have a great idea for a business, but there are things that you need to do before you turn this idea into a very expensive reality.

1. Mind your own business. You have to know your business before you start it. Not just your store, your website, your personal effort, but the ins and outs of the industry as a whole. How would you start a knitting store without knowing how other knitting stores function? Is there a place for you in the market? Is the market doing well for your industry? Are you taking a brave and awesome step, or setting yourself up to fail? Know these things.

2. Do you know what you’re doing? Beyond knowing about how other businesses with models like yours are doing, you have to know how to do the every day functions your company would require from you.

3. Your costs. One thing all the people on the show have in common is that no one has a handle on their finances. They all think that starting their business would help them save money…which is almost never the case, especially within the first few years. It’s true that it takes money to make money. Are you hiring employees? Do you need office supplies? Computers? Produce? Electricity? Whatever your business is, you’re going to need things. And these things cost money. Know your startup costs, how you’re covering them, and how you’re moving forward.

4. Your environment/clientele. Are you selling fishing gear in the middle of the desert? Think about your location, and whether or not your idea will fit. If it will be a struggle from the get-go, rethink. There are enough hardships within the first year that you don’t want to add more to your plate. Next, think of the best way to reach your clients. Who are they? What kind of promotional efforts will they respond to? You have to know who you’re marketing toward.

And if you do open a restaurant, make sure to do a good job because you don’t want this guy yelling at you, do you?

Robert Irvine, Restaurant Impossible host and bicep extraordinaire, courtesy of Loren Javier via Flickr.

Yeah, I didn’t think so.

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Alexandra Saville (@CapitalistaBlog) is the Media and Writing Specialist at Law Street Media. She has experience in the publishing and marketing worlds and started her own publishing company right out of college. Her blogs, The Capitalista and Capitalista Careers, focus on the young and the entrepreneurial.

Alexandra Saville

Alexandra Saville is the Media and Writing Specialist at Law Street Media. She has experience in the publishing and marketing worlds and started her own publishing company right out of college. Her blogs, The Capitalista and Capitalista Careers, focus on the young and the entrepreneurial.

The post Business: Impossible appeared first on Law Street.

Happy Thanksgiving!! I hope everyone takes at least three trips to the dinner table, two naps in your bed, and one family outing — whether it be to see Hunger Games, look at Christmas lights, or pick up more beer for your uncles. Do it. And if you run out of topics to discuss or if you’re one of those people who just remember things better when they’re in list form then this is for you!

Here are 7 things that I think you should know about intellectual property. Before you take that first nap of the day, think about it. Think about your thoughts — how you express them and how you can protect that expression. What about that business you wanted to start — what did you want to call it again? How would you like it if someone tried to capitalize off of the goodwill you built behind that name?

That’s what I thought.

1. You don’t need to register your creation with the US Copyright Office to have copyright protection. The moment you place your expression on paper (or in some tangible form) it’s protected by copyright. But here’s the catch: if someone infringes on your copyrighted material, you will have to register to bring suit.

2. Federal registration of a trademark isn’t necessary either! You have trademark rights in the name or slogan that you create the moment you place it into commerce. (Commerce = in the market.) Also, you don’t need federal registration to use the TM symbol either. The ® is off limits unless you’re registered though.

3. There are two types of patents. Design patents are for, well, novel designs. For example, the sleek makeup of iphone display stands is covered by a design patent. Utility patents protect new inventions and processes, i.e the detection of your headphones in your phone or the analysis of your face to unlock an Android. Clearly, I have phones on the brain today.

4. Applications filed with the Copyright Office are public records and only $35. Why not register your art with the Copyright Office? Shine bright like a diamond, Riri.  But keep in mind that this is not the avenue you want to take if you’re trying to protect your family’s mac-and-cheese recipe.

5.  Registration of a mark is not guaranteed upon filing. Your potential mark may cause confusion with another owner’s mark, among other issues. It’s $325 to file a trademark application online and $375 to file for federal registration on paper. Your money may not be refunded so it’s a good idea to conduct a preliminary search (or hire an attorney to do so) before you file.

6. Copyright Law doesn’t protect ideas, only the expression of those ideas. Don’t rely on Copyright Law for that great business idea you have brewing. I would recommend nondisclosure agreements. If you’re meeting with investors to build your capital, get them to sign nondisclosure agreements so that if they share or utilize your idea beyond the bounds you establish you’ll be able to bring a breach of contract suit.

7. Timing. Copyright protection (for works created after ’78) lasts from the moment of creation until the end of the author’s life plus 70 years. Trademark registration can last indefinitely as long as you file the requested paperwork the years you are told. Utility patents filed after June 8, 1995 are granted protection for 20 years from the date of the application. Design patents have protection for 14 years from the date the patent is granted.

Learn more at these sites:

On Copyrights

On Trademarks

On Patents

Gena.

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Featured image courtesy of [Lynn Friedman via Flickr]

Gena Thomas

Gena Thomas, a recent graduate of Howard University School of Law, was born and raised in Lafayette, Louisiana. A graduate of The University of Texas at Austin, she enjoys watching scary movies and acquiring calories from chocolates of all sorts. Contact Gena at staff@LawStreetMedia.com.

The post 7 Things to Place In Your Back Pocket appeared first on Law Street.

In 2011, a couple of friends concocted a plan. What if they could buy a beer company? Why not?

After (we assume) throwing a few back, the pair decided it would be a great idea to take to social media to figure out if they could raise the $300 million it would take to buy Pabst Blue Ribbon. They managed to raise $200 million with the promise of free beer and stock options. Inventive? Yes. Illegal? Incredibly. At a recent Bloomberg Law event on the JOBS Act, Karl Kilb said that the point of the changes to the rules regarding funding is to find investors who not only understand but can withstand the risks involved.

It’s been a year since Obama signed the JOBS Act, and things are still being ironed out. How will the act, which provides start-ups and other businesses more options to access capital and an ease of communication with investors, fit in with laws regarding investor protection and compliance? A panel of lawyers discussed this at at Bloomberg Law’s event.

And Twitter. I was surprised that among the suits, name tags, and legal jargon, there was a heavy flow of communication around social media. The takeaway? Not only is it here to stay, but it’s a game changer.

The JOBS Act takes into consideration the fact that people have communication literally at their fingertips by considering how social media affects IPOs. Will tweeting to investors still be classified as confidential? There are so many questions that the abundance of new communication tools create.

As an entrepreneur myself, I know the thing that all people starting a business venture come to know: It is always more expensive than you hoped. Not sometimes. Always. The act initiates a way for start-ups to take their big ideas and cast a wide net over a large pool of investors. Great in theory. This coincides with the popping up of countless crowdfunding sources. These new methods to gain capital just might add fuel to the fire of countless ideas and create jobs. However, we have to figure out how to navigate the potential legal mine fields because they muddy the waters that the SEC is working to preemptively clean up.

This is a discussion that is fueled with opinions and flooded with debate. One thing is certain, though. The name of the new game is #balance.

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Alexandra Saville (@CapitalistaBlog) is the Media and Writing Specialist at Law Street Media. She has experience in the publishing and marketing worlds and started her own publishing company right out of college. Her blogs, The Capitalista and Capitalista Careers, focus on the young and the entrepreneurial.

Featured image courtesy of [Talk Radio News Service via Flickr]

Alexandra Saville

Alexandra Saville is the Media and Writing Specialist at Law Street Media. She has experience in the publishing and marketing worlds and started her own publishing company right out of college. Her blogs, The Capitalista and Capitalista Careers, focus on the young and the entrepreneurial.

The post #TheJOBSAct appeared first on Law Street.

Mayor Bloomberg has caught a lot of heat in the past few months with his efforts regarding the large soda ban, which ultimately failed. However, he has risen from the ashes as techie superhero.

In addition to introducing free Wi-Fi hotspots around New York City, the mayor of this great city announced his plan to keep the Big Apple ahead of the curve and establish its supremacy as an innovative tech hub.

With the infamous drummer of the roots, Questlove, by his side, Mayor Bloomberg announced his plans for the Made in NY Media Center, a space where “storytellers, creative professionals and entrepreneurs across multiple disciplines…can gather and create,” pretty much whatever they want as long as it bolsters NY’s image as an innovative techie paradise.

New York has been called the “business capital of the world“, the “fashion capital of the world“, and now Mayor Bloomberg hopes it will become the “global media capital of the digital age.” Made in NY will be creating over 3,000 jobs and will be an innovative hub where ideas come to life. See for yourself.

With Questlove as Made in NY’s first “Artist in Residence”, Made in NY looks like it will begin to thrive down on 30 John Street in DUMBO. NYC is currently the second-most funded tech hub next to Silicon Valley, however NYC is a place where the possibilities are endless. With techie start-ups for new media, mobile gaming and other forward-thinking companies popping up out of the woodworks to make a name for themselves in NY, this city is becoming the place to go to turn an idea into a reality.

Made in NY promotes the film and television industries that provided much needed revenue to New York City for years, bringing in over $400 million in tax revenue. It is definitely an exciting time to be in NYC and it should be interesting to watch as the Made in NY Media Center grows and evolves.

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Rob Anthony is a founding member of Law Street Media. He is a New Yorker, born and raised, and a graduate of New York Law School. In the words of Supreme Court Justice William O. Douglas, “We need to be bold and adventurous in our thinking in order to survive.” Contact Rob at staff@LawStreetMedia.com.

Featured image courtesy of [Scott Beale via Flickr]

Robbin Antony

Rob Antony is a founding member of Law Street Media. He is a New Yorker, born and raised, and a graduate of New York Law School. Contact Rob at staff@LawStreetMedia.com.

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