Practical Law Glossary Item 3-518-8137 (Approx. 3 pages)
Glossary
Emerging Growth Company (EGC)
A category of issuer created under the Jumpstart Our Business Startups (JOBS) Act of 2012, an emerging growth company is a company with annual gross revenues of less than $1,235,000,000 (initially $1 billion, but adjusted for inflation in April 2017 and September 2022) during its most recent fiscal year. A company retains emerging growth company status until the earliest of:
The end of the fiscal year in which its annual revenues exceed $1,235,000,000.
The end of the fiscal year in which the fifth anniversary of its IPO occurred. For example, if a company with a December 31 fiscal year-end completed its IPO on May 2, 2012, it would have ceased to be an emerging growth company by December 31, 2017 (see Question 40, JOBS Act Frequently Asked Questions: Generally Applicable Questions on Title I of the JOBS Act (May 3, 2012)).
The date on which the company has, during the previous three-year period, issued more than $1 billion in non-convertible debt.
A company could not be an emerging growth company if it completed its IPO on or before December 8, 2011. Emerging growth companies are entitled to reduced regulatory and reporting requirements under the Securities Act and the Exchange Act. The category of emerging growth company does not exclude foreign private issuers that otherwise meet the definition. For more information on emerging growth company exemptions, see Practice Note, JOBS Act: On-ramp to the Capital Markets for Emerging Growth Companies Summary.