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Does General Solicitation Improve Access to Equity Capital for Small Businesses? Evidence from the JOBS Act

Anup Agrawal & Yuree Lim

Journal of Financial and Quantitative Analysis2026https://doi.org/10.1017/s0022109025102470article
FT50AJG 4ABDC A*
Weight
0.50

Abstract

Under Title II of the Jumpstart Our Business Startups Act, firms can sell private placement securities to the public via general solicitation (GS) or privately (non-GS). We find that equity offerings under GS tend to be riskier than under non-GS. After accounting for selection, GS issuers are less likely to succeed in i) raising capital, ii) getting venture capital (VC) funding, and iii) exiting via IPO or mergers and acquisitions, and incur substantial brokerage costs for advertising and verifying investor accreditation. However, GS appears to help new entrants and offerings that use registered brokers. The success of Form D financing improves future VC financing and exit outcomes.

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https://doi.org/https://doi.org/10.1017/s0022109025102470

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@article{anup2026,
  title        = {{Does General Solicitation Improve Access to Equity Capital for Small Businesses? Evidence from the JOBS Act}},
  author       = {Anup Agrawal & Yuree Lim},
  journal      = {Journal of Financial and Quantitative Analysis},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1017/s0022109025102470},
}

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Does General Solicitation Improve Access to Equity Capital for Small Businesses? Evidence from the JOBS Act

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.