Did you know that about 80 years ago the average person could decide where and how to invest in the capital markets? Anyone could profit from the freedom to invest. But since the stock market crashed in 1929 followed by the Great Depression, the government exerted legal barriers for everyday investors to enter the capital market, in order to prevent the next crash. These everyday investors were thus kept out of various investment opportunities. Also affected were early stage businesses and startup companies that needed public investments to operate.

So until the JOBS Act passed in April 2012, the general public wasn’t allowed to invest in any company they want with their own money, and small businesses weren’t allowed to publicly advertise that they were raising money. The JOBS Act is the first piece of legislation intended to encourage funding for startup businesses by easing securities regulations and allowing capital flow from the crowd. (While the JOBS Act was passed last year, we’re currently waiting for the SEC to finalize the rules and regulations).

In this infographic, Return on Change describes what happened before and after the 1929 stock market crash and how crowdinvesting, driven by the JOBS Act, will change the way small investors and small businesses interact within the capital market. As you can see, crowdinvesting will truly allow everyone to get involved in startup finance and unlock the value of capital.

JOBS Act Infographic


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Wen Fu
Wen is the Brand Marketing intern at Return on Change. Before graduating from Rhodes College in Memphis, Tennessee in May 2013, she led the social media efforts for a nonprofit climate change media project, volunteered at a local HIV/AIDS support organization, served as a student marketer for the Rhodes Center for International Education, studied and interned for a global ad firm in London, and worked as a digital media analyst for several Memphis-based ad agencies.