Hot IPO Cvent praises JOBS Act, talks disruption

As the cloud-based event management software company Cvent opened for trading Friday, the stock moved sharply higher and the company's founder and CEO, Reggie Aggarwal, told "Squawk on the Street" that new regulations helped the company raise money on the public market.

It closed Friday at $32.50, a gain of 56.8 percent from its offering price.

(Click here to see where Cvent shares are trading now)

"The JOBS act was very supportive. It was very helpful because as a smaller company trying to build, it's great to have the support of the new regulations," Aggarwal said. "I think it gives an opportunity for smaller companies that don't have to go through all that regulatory bureaucracy, frankly, so they can focus on building their business."

However, there has been criticism of IPOs filed utilizing the Jumpstart our Business Startups (JOBS) Act, since these "stealth" IPOs have lighter requirements for disclosure and shorter timelines than non-JOBS IPOs.

Companies looking to use this program must have less than $1 billion in revenue and their S-1 filing is only initially available to qualified investors, allowing them to "test the waters."

(Read more: Stealth IPOs: Is an avalanche about to hit?)

When asked whether the lighter disclosure is a detriment to investors, Aggarwal said "I think there is still a ton of transparency that goes on," since companies must still provide several years of financial results.

Going public "made a lot of sense" for Cvent, Aggarwal said, since the meetings and events industry—one which he estimates is a $565 billion annual business—is ripe for disruption.

"To penetrate the global market, there is a lot of changes going on with mobile," he explained. "All attendees that go to events are mobile professionals and they're kind of going outside the front door to meeting organizers with pitchforks and torches saying 'we need mobile apps and mobile devices to make it easier.' "

"Cvent has been doing that for a while and we think it's an opportunity to continue growing," he said.

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Aggarwal said the consumer side of the business presents the best opportunities for his company although the business-to-business opportunities for meetings and events are also interesting. He also said the company has had a history of acquisitions and didn't rule out making deals for growth.

Cvent raised $118 million by offering 5.6 million shares at $21, above the range of $17 to $19. Cvent initially filed confidentially on April 29. Morgan Stanley and Goldman Sachs acted as lead managers on the deal.

—By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul