InfoAnda - Analysis: U.S. Jobs Act could help the least flashy startups |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

World powers to start work on Iran sanctions | 1 April 2010
Taiwan's oppisition gets landslide win in by-elections | 6 March 2011
UAE Suspending BlackBerry Service | 6 August 2010

Bob Dylan to exhibit artwork in Denmark | 16 September 2009

Forum Views () Forum Replies ()

Read more with google mobile : Analysis: U.S. Jobs Act could help the least flashy startups |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Jack & Suzy Welch Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read New high in U.S. autism rates inspires renewed debate 1:46pm EDT Urine-soaked eggs a spring taste treat in China city | 11:40am EDT Exclusive: Brazil to rally BRICS against rich countries 28 Mar 2012 Exclusive: U.S. sees lifetime cost of F-35 fighter at $1.45 trillion 1:28am EDT Pentagon sees mass layoffs if budget cuts prevail 4:08pm EDT Discussed 248 Poll: Americans angry with Obama over gas prices 224 Cheney recovering after heart transplant: spokeswoman 218 Black friend defends shooter of Florida teen Watched Congressman dons a hoodie, gets kicked off House floor Wed, Mar 28 2012 Horror hits the runway in Japan Fri, Mar 23 2012 Elephant runs away from circus 12:16am EDT Analysis: U.S. Jobs Act could help the least flashy startups Tweet Share this Email Print Related News Big venture firm raises the networking stakes Mon, Mar 26 2012 Insight: Samsung: "fast executioner" seeks killer design Fri, Mar 23 2012 Bill to boost startups wins Senate approval Thu, Mar 22 2012 Facebook underwriters to get 1.1 percent fee: source Tue, Mar 20 2012 Apple's Cook finally shares $98 billion cache Mon, Mar 19 2012 Analysis & Opinion The stranglehold of payments networks NY high court warning: state laws don’t apply to overseas conduct Related Topics Politics » Tech » Small Business » Media » House GOP leadership led by Speaker of the House John Boehner (C) unveils JOBS Act outside Capitol Hill in Washington, February 28, 2012. Credit: Reuters/Larry Downing By Sarah McBride SAN FRANCISCO | Thu Mar 29, 2012 4:41pm EDT SAN FRANCISCO (Reuters) - Much of the talk around the Jobs Act has centered on the technology sector, but the biggest impact could land on far more prosaic ventures, investors and analysts say. The Jobs Act, a bill to make it easier for young companies to raise money, raced through Congress over the past several weeks and likely will be signed into law by President Obama next week. The president sees the legislation as a way of giving "entrepreneurs opportunities to start creating the next Google or the next Apple or the next innovative company." And Republicans have matched his enthusiasm. Rep. Eric Cantor quoted Google's public-policy blog on how "the next Google, Facebook, Apple, or Amazon could be funded thanks to crowdfunding legislation," a key part of the bill that allows large numbers of people to invest small amounts in a company. Rep. Tom Rooney wrote about entrepreneurs "with dreams to build the next Apple, Google, or Ford." But while high-tech businesses may be widely associated with entrepreneurship, they are not the most prevalent. "In colloquial usage, we tend to use startup in the sense of high growth, innovative business," said Dane Stangler, director of research at the Ewing Marion Kauffman Foundation, which studies entrepreneurship. "Those are by definition the minority of new companies." The sectors with the most new activity are construction, professional and other services, and retail, he said. Entrepreneurs say those are the businesses most likely to benefit from a key provision in the Jobs Act known as crowdfunding. The technology sector is in many ways the least in need of help. Last year, software companies raised $6.71 billion, up from $4.86 billion the year before, according to the National Venture Capital Association and Thomson Reuters. Information-technology services companies raised $2.42 billion, up from $1.75 billion the year before. "If you're a tech business in Silicon Valley and you can't raise money, that's a bad sign," said Ryan Caldbeck, chief executive of CircleUp.com, a company currently in test phase that connects young businesses with potential investors. At Trust Exchange, a San Francisco startup that aims to tap into social-networking data to prevent credit card fraud, co-founder Wolfram Arnold sees fundraising as the least of his problems. "The biggest hurdle to new startups is not the money," Arnold said. "It's the network of professionals, advisors, community. None of these will come from crowdfunding." But for other types of businesses, the issue is indeed the cash. "We have gotten introductions to all relevant VCs (Venture Capitalists) in the consumer-product space and they've all said: 'You're too early,'" said Sally Jones, who started the kiddy-snack company, Giddy, two years ago. Never mind that Giddy products are in 250 Targets, 30 Whole Foods and other retailers around the country. The potential investors wanted to see $5 million to $10 million in revenue and Giddy has not yet hit that mark. Under the new law, it will be easier for Jones to tap individual investors who would be satisfied with steady growth rather than the promise of a huge return. In the past, only accredited investors with a high net worth were permitted to invest in private companies such as Giddy. Now, it will be open to anyone. The idea is for hundreds of people to invest small sums in a single startup. Caldbeck believes consumer-products companies will benefit most from increased exposure to potential investors. "Companies with $1 million-$5 million in revenue," he said. "These are the companies that need the money to hire a vp of sales, a vp of marketing." Under the new law, sites that arrange crowdfunding must register with the Securities and Exchange Commission. The sites will take a cut of the investments and dozens of players are likely to jump into the game. Some companies have already tried a variation of the crowdfunding theme, getting the public to send cash in exchange not for shares but for T-shirts, discount coupons and other perks. Satarii, which makes an iPhone and camera dock that allows people to film themselves in motion hands-free, raised almost $25,000 that way last year on a site called Indiegogo.com after unsuccessfully approaching around 50 accredited individual investors, said co-founder Brian Lamb. "As a seed-stage company that makes physical products, (traditional) fundraising is nearly impossible," Lamb said. "What crowdsourcing did was it got us a list of customers." But for the next stage, when he needed to raise enough cash to build the actual product, Lamb went back to the accredited investors. This time, with a list of potential customers garnered from his crowdsourcing, he raised $900,000. His first batch of docks shipped earlier this month. Under the new law, Lamb could have sold up to $1 million in equity using crowdsourcing. But he is not sure he would have gone that route. "If we had taken equity from crowdsourcing, we would have had thousands of funders," he said. "It'll be complex to implement." Even if the law helps certain types of companies get funding, it's hard to estimate how many jobs that might create. In 2010, businesses under a year old produced 2.5 million jobs, down from about 3.5 million in 2007, according to the Bureau of Labor Statistics. While a handful of the new companies started each year take off and hire hundreds or thousands of people, "a good portion don't hire anybody," said Robert Litan, a researcher with the Kauffman Foundation. Take Jones' two-year-old Giddy. She has two fulltime employees - herself and her co-founder - and hires a handful of part-time consultants such as a food scientist. She believes she is helping create jobs among her manufacturing partners, but is not sure how many. In the venture capital community, the most excitement has centered on a provision that will benefit companies that are a few years past the startup phase by making it easier to file for an initial public offering. Companies will be less limited in their communications with analysts around their IPOs, for example. Ben Wolin, the chief executive of venture-backed online wellness company Everyday Health, filed for an IPO two years ago and then withdrew it, but said he might give it another shot under the new rules. "You'd be establishing relationships with investors, providing information about your company, you'd start getting feedback," he said. "That allows for a more informed decision about when and how to go public." The law also raises the limit on the number of shareholders a company can have before it must file financial statements with the SEC. That will enable profitable private companies such as Facebook to stay private longer if they choose. Ironically, measures that boost technology companies could have a detrimental impact on job creation in many ways, as those companies turn out innovations that allow other businesses to become more productive with fewer people. That is already happening. "The number of new firms being created; the numbers of employees they were hiring has been declining for over a decade," said Litan. "Largely due to technology." (Editing by Andre Grenon) Politics Tech Small Business Media Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Friday, 30 March 2012
Analysis: Springtime in Cuba? |
Intrigue, treachery charges fly in fight for U.N. post |
Chavez back in Venezuela after radiation therapy |
France bars four more Islamic preachers from entry |
Two men torch themselves in Italy as hardship bites |
Iran suspends accreditation for
Analysis: Drug gang menace overshadows Mexican election |
Apple, Foxconn pledge to revamp worker conditions |
BlackBerry maker posts loss; some executives exit |
Analysis: U.S. Jobs Act could help the least flashy startups |
Star-struck Japan PM befriends Facebook's Zuckerberg |
Eircom applies for court protection over $5 billion debt |
More clean tech IPOs come to market, amid skepticism |
LivingSocial drops Instant for food order service |
Avaya IPO faces long wait amid Facebook mania |
Robo-readers: the new teachers' helper in the U.S. |
The fairy tale life of Mirror Mirror star Lily Collins |
Smiles and a warning as Lindsay Lohan ends probation |
U.S. may accept less stringent controls for Taliban detainees |
Dozens of Taliban killed in fighting in west Afghanistan |
French police swoop on suspected Islamists |
Israel cordons off West Bank over Land Day threat |
Mexican presidential favorite vows to restore peace |
North Korea test fires short-range missiles: reports |
Islamist draws crowds in Egypt election campaign |
Italy's Monti seeks to defuse row over party remarks |
Poverty, frustration keep Macedonia tensions alive |
Japan government to submit tax hike plan, heads into political showdown |
Apple, Foxconn set new standard for China work conditions |
Murdoch's media empire strikes back |
China's Alibaba tests social shopping with Pinterest clone |
RIM posts loss as new CEO begins to clean house |
Verizon plans wireless video service: WSJ |
More U.S. clean tech IPOs come to market, amid skepticism |
Micron settles memory chip lawsuit with Oracle |
Google to open online tablet store: report |
Florence + The Machine get Unplugged for MTV |
Heejun Han voted off American Idol, eight remain |
Smiles and a warning as Lindsay Lohan ends probation |
Author Shriver looks at terrorism with droll humor |
Exclusive: Iran helps Syria ship oil to China: sources |
Exclusive: China Communist Party scandal triggered by British man's death: source |
Former Soviet KGB spy chief commits suicide |
Clinton meets Saudi king amid Syria, Iran tensions |
New Iran talks may focus on higher-grade atom work |
Mexican presidential favorite vows to restore peace |
In Myanmar, voters prepare for clash of symbols |
Japan to lift entry ban on some Fukushima cities |
Syrian army must pull back first under Annan plan |
Apple supplier Foxconn cuts working hours, workers ask why |
Disney, Japan's DeNA to jointly develop mobile games |
Harry Potter tour focuses on behind-camera wizardry |
Harry Potter and the strange case of Oscars snub |
Beatles musical planned for 50th year of debut song |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01