How the JOBS Act Boosted the IPO Market (Infographic)
The implementation of much of the JOBS Act has been delayed and belabored, meaning that respective channels of small-business finance have seen little, if any, benefit, yet.
The IPO market is an exception.
Since the JOBS Act -- or Jumpstart Our Business Startups Act -- was passed in April of last year, the pace of IPOs has shown marked improvement.
In the first three quarters of the year, there were 158 U.S. IPOs which raised more than $35 billion in capital. That’s already more than all of 2012 and a 58 percent increase over the first nine months of last year. To be sure, there are multiple factors affecting the improved IPO market, including an improved investor appetite for risk.
Of the 158 IPOs in 2013, 84 percent fall under the category of “emerging growth companies,” which have less than $1 billion in annual revenues. Emerging growth companies -- or ECGs -- were authorized under the JOBS Act to file their disclosure documents on a confidential basis. Many of those eligible did chose to do so.
Related: SEC Releases Long-Awaited Rules on Crowdfunding
Take a look at the infographic below, compiled by EY, to see trends among those emerging growth companies that have gone public this year.