HispanicBusiness

"It could represent an important new resource, particularly for the startups who don't have the rich uncle," said Mr. Pines, whose nonprofit organization is based in Vienna, Va., and helps education entrepreneurs connect with the K-12 market.

Though he doesn't think the JOBS Act would have a large effect on education startups, Tom Vander Ark, a managing partner of education venture firm Learn-Capital, in San Mateo, Calif., said the crowd-funding measure is conducive to companies "that advance social and return-seeking agendas," like those in education. People are more willing to invest small amounts in a company with less earning potential if it is helping education, he said.

Mr. Vander Ark said a more successful way to spur startup investments through federal legislation would be to open some of the U.S. Department of Education's innovation- and technology-related grants--such as the Investing in Innovation, or "i3" fund--to for-profit companies.

'Expensive and Onerous'

As for the IPO provisions in the bill, expert predictions fall short of a noticeable increase in such filings down the road. Pines said the bill could lead more companies owned by private-equity firms to go public, so private investors could see quicker returns on their investments, without as much hassle.

"[Current federal] requirements are expensive and onerous," Mr. Pines said. "So if those are suspended for five years, that's a big deal. Does it make the difference in going public? I don't know. But by suspending the requirements in the near term, it may give an early-stage company the kind of running space it needs."

Experts say the increasing flow of venture capital into K-12 and heightened interest in educational technology are generating opportunities for market newcomers, but the highly local nature of K-12 education makes it difficult for companies to grow quickly. After nine years of less than $100 million of venture-capital funds being invested in K-12 education, 2010 saw $131 million invested, followed by a major increase in 2011, to $334 million, according to statistics from the Chicago-based investment and consulting firm GSV Advisors. Those down years followed the dot-com bubble of the late 1990s when there was also a large flow of venture capital into K-12.

Proponents say the bill will allow companies to grow faster and, thus, hire more people.

But across all sectors, opponents to the legislation cautioned that loosening regulations on startup investments--many put in place following the burst of the dot-com bubble--could spur a repeat of that history. Despite its support in Congress, the bill was opposed by Securities and Exchange Commission Chairwoman Mary L. Schapiro, several major labor unions, and consumer-watchdog groups.

Newman said some of the questions about investor protections and market saturation asked by opponents are legitimate ones. It's also worth questioning if the easier access to capital "disaggregates" the market, spreading thinner the money coming in, he said.

"Does it continue to enable businesses that shouldn't be funded to get dollars and crowd out more viable and credible businesses?" Newman asked. "I don't think the marketplace has a shortage of good ideas. It probably has too many."

Coverage of the education industry and K-12 innovation is supported in part by a grant from the Bill & Melinda Gates Foundation.