IPO Village Announces New Crowdfunding Market Forecast: Data Indicates Solid Growth in Initial Public Offerings for 2013

Early Indications Show the JOBS Act Not Only Spurs Economic Growth but Increases the Number of Companies That Will Actually Go Public in 2013


NEW YORK, NY--(Marketwire - Nov 8, 2012) - IPOVillage.com, a website that hosts Nasdaq/OTC IPO's for emerging growth companies, announced today that the market for Initial Public Offerings (IPO) is anticipated to grow significantly in 2013. According to IPO Village, this growth is not only being spurred by solid improvements in the global economy, but also by the JOBS Act, which is anticipated to go into effect in the coming months.

IPO Village's first crowdfunded IPO will be a part of the First Line Capital portfolio company. Simon Erblich, Founder of First Line Capital states, "Because we are involved with IPOs well before the public is aware of them, we are able to see firsthand a steady increase in the number of companies wanting to go public, which has spiked since the JOBS Act."  "Both companies and investors want to take full advantage of the JOBS Act. This is why we are experiencing a significant number of investors signing up for IPO investment opportunities on IPOVillage.com and an uptick in the queries from businesses wanting to realize this capital and put it to work."

NOTE: While First Line Capital cannot comment on deal specifics, the number of deals they have in discussion are up and rising.

Clearly the JOBS Act is going to have a significant impact on the future of business because the legislation is eliminating the barriers of going public for small companies. According to MSN Money reporter Trefis, "The JOBS Act... provides opportunity for small companies by easing regulations and allowing unaccredited investors to participate in 'crowdfunding' to raise capital. Small-to-midcap companies are usually reluctant to go public because they are discouraged by the legal, marketing and accounting costs involved, as well as the requirement to disclose quarterly financial and business information, which poses a competitive threat to their operations. The JOBS Act, however, considerably reduces the regulatory burden on emerging companies and makes it easier for them to go public."

While full details on the crowdfunding market forecast can be found here, below are some highlights from the forecast:

  • "The [JOBS] act... allows 'emerging growth companies,' with less than $1 billion in annual revenues to submit their documents to the SEC for confidential reviews..." (Emily Chasan with the Wall Street Journal)
  • Crowdfunding will take off in 2013 based on a number of key factors outlined by Devin Thorpe in an article for Forbes.
  • The last time IPO's rose by any significant extent was in 2010 according to the report "Global IPO Markets" by Forbes.
  • We expect more volume (in IPO's) first half of 2013. Industries to watch include technology, consumer products and the industrial sectors, according or a report by Ernst & Young.
  • "The JOBS Act could give small long term care companies an additional source of start-up funding and expansion at a time of market uncertainty." (John Kinney for Baker-Donelson)

Further indications of strong IPO interest being driven from the JOBS Act is being realized by the number of interested investors signing up on IPOVillage.com. The site has already received over $1 million in pledges for their first crowdfunded IPO set to go live in the coming weeks. IPO Village is an organization that uses crowdfunding to bring exclusive pre-IPO's to the everyday retail investor, allowing "Main Street" investors to access stock that was once only reserved for the Wall Street elite.

To learn more about First Line Capital visit http://firstlinecapital.net/ or go to IPOVillage.com to learn more about IPO Village.

ABOUT IPO VILLAGE
IPO Village offers IPO investment opportunities to every retail investor. While other crowdfunding type sites focus on private offerings, IPO Village's hosted public offerings provide its member investors with liquidity and a foreseeable exit. The Company employs a "first-come-first-served" policy with all parties equally welcome to invest. Since IPOs are typically oversold, IPO Village guarantees a place in line and encourages retail investors to sign up now at www.ipovillage.com.

Contact Information:

Contact:
Kimberley Brown
Leverage PR

Phone: 512.271.9489, Ext: 702