The JOBS Act: Crowdfunding for Small Businesses and Startups

Emerging Growth CompaniesFacts, Figures, and Potential

Of the 29,169,212 companies listed in the Manta¹ database, 25,346,594, or 86.9%, have less than $1 billion in reported revenue.² These are emerging growth companies in the United States. The JOBS Act targets these firms and allows them to raise up to $1 million in equity capital via crowdfunding on an annual basis. In this chapter, we examine the potential EGC market in general. At the end of the chapter, we show how EGC firms have used existing crowdfunding platforms to raise donations, but not equity. This will help us better understand how these platforms will help EGCs gain funding.