In a nutshell: Senators Robert Menendez (D-NJ) and Pat Toomey (R-PA) introduced the Start-up Jobs and Innovation Act to spur capital formation for R&D-focused companies in the early stages of development.
Why you should care: It can take over a decade and cost more than $1 billion to bring a single groundbreaking biotechnology treatment from laboratory bench to hospital bedside, and virtually the entire process is funded by private investment. The Start-up Jobs and Innovation Act would encourage the private sector to invest in breakthrough research being conducted at young biotechs and other innovative small businesses across the country.
Bottom line: This Act will promote greater private investment in small business research, encouraging investors to think beyond immediate gains and support the long-term growth of breakthrough innovators. The legislation would allow small companies to partner with their investors via R&D Partnership Structures – an important change that will incentivize early-stage investment and support small business innovation.