WASHINGTON, D.C. (Press Release)– U.S. Congressman Brad Schneider (D-Illinois), joined a bipartisan coalition on Thursdayd, June 19, in introducing the Helping Angels Lead Our Startups (HALOS) Act, which would remove burdensome restrictions from startups seeking opportunities to meet with groups of prospective investors.
“As startup businesses look for capital, they frequently rely on demo and pitch days – events where entrepreneurs can introduce their business ideas to potential investors to raise capital,” Schneider said. “However, recent regulation has had the unintended effect of preventing startups from participating in these important events. The HALOS Act helps fix this problem, allowing entrepreneurs and investors to connect more easily while still preserving crucial investor protections.”
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“One of our top priorities in Washington needs to be making it easier for entrepreneurs and small businesses to access the private capital they need to grow, innovate and create jobs,” said Rep. Steve Chabot (R-Ohio). “The last thing we should do is place new roadblocks in the way of investors looking to provide much-needed capital to startups. Unfortunately, that is exactly what new rules from the SEC would do. The HALOS Act is a bipartisan, bicameral effort to clarify these rules and preserve important forums like ‘demo days,’ so that our startup community can continue to showcase their ideas to key investors, investors to whom they may have little or no access otherwise.”
New Securities and Exchange Commission (SEC) regulations, initiated by the JOBS Act, have put demo days at risk by requiring angel investors to turn over extensive personal financial details to an onerous new third-party vetting process. This makes it more difficult for investors and startups to meet.
The bipartisan, bicameral HALOS Act would lift this burdensome restriction and instead preserve the same investor vetting process angel investors have been using at demo days for years.
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Preceding provided by Congressman Brad Schneider of Illinois