Deregulating Innovation Capital: The Effects of the JOBS Act on Biotech Startups

Since the start of the COVID-19 pandemic, everyone from politicians to reporters to ordinary Americans have been talking about drug treatments, vaccines, and the Federal Drug Administration (FDA) approval process. These discussions have centered on vaccine developments by well-known pharmaceutical giants such as Pfizer and AstraZeneca as well as emerging startups like Moderna Therapeutics and BioNTech.

Almost a decade ago, lawmakers and regulators took steps to improve capital access for startups by easing the regulatory requirements for publicly selling stock. Under the Jumpstart Our Business Startups (JOBS) Act of 2012, Congress and the Securities and Exchange Commission (SEC) significantly reduced … Read more