How Crowdfunding, the JOBS Act and changes to the venture capital ecosphere have created new strategies for early-stage emerging growth companies.
In an era of increased financial regulation such as Dodd-Frank, Congress quickly passed The JOBS Act in April of this year in response to a need to increase the flow of capital to job creating entrepreneurs. Of particular importance is the removal of the ban on General Solicitation and the broadening of investor accreditation, which may provide emerging growth companies with more channels to access capital.
Crowdfunding may become another asset in early stage financing. It allows for the first time companies to aggregate investors in early stage companies on the Internet portals, creating an entirely new dynamic that enables average investors become venture capitalists and gamble on new companies.
During OneMedForum, experts explored the key issues of crowdfunding and novel early-round financing strategies, including:
• How will the SEC regulate the middle-men assisting in general solicitation?
• How has the investor pool grown in response to the JOBS Act, and how will life sciences companies take advantage?
• How has venture capital changed following the recession, and how have companies sustained early round financing?
• How does such a strategy fit within overall financing programs?
• Will later-stage investors and larger investors embrace companies that have crowdfunded?
Aftab Jamil, Partner and National Leader for the Technology and Life Sciences Practice at BDO
Aftab has over 22 years of experience in public accounting. He has substantial experience in serving life sciences companies including biotechs, medical device manufacturers and CROs. Aftab has served public and private companies ranging from start-up, development stage VC backed enterprises to multi-billion dollars international companies with operations in multiple locations. He works closely with entrepreneurial businesses to advise them on their financial reporting needs.
Aftab has significant experience with SEC reporting, mergers and acquisitions, international operations and strategic partnerships. He has participated in the preparation of numerous IPOs and secondary public equity and debt registration statement filings as well as on-going Securities and Exchange Commission reporting. Aftab has been a key contributor in the publication of various Thought Leadership projects that had extensive media coverage on various technical and financial reporting challenges facing technology and life sciences companies. He has also written articles on emerging accounting and financial reporting issues and has been a frequent presenter at various forums focusing on issues facing the technology and life sciences companies. He is currently the practice leader of the BDO’s Technology & Life Sciences practice. Prior to joining BDO, Aftab was a partner with Ernst & Young.