U.S. Sens. Chris Murphy of Connecticut and Pat Toomey of Pennsylvania are reintroducing the Helping Angels Lead Our Startups (HALOS) Act, legislation designed to assist investors seeking to finance startup companies.
The legislation directs the U.S. Securities and Exchange Commission to revise Regulation D of the federal securities laws that restricts startups from pitching investment opportunities to entities that do not meet the financial requirements of an accredited investor. The HALOS Act would create an exception in Regulation D that enables entrepreneurs seeking funds to make presentations to prospective investors at so-called “demo days” events that are sponsored by angel investors and venture capital groups, government agencies, nonprofits or colleges and universities.
“Across Connecticut in places like New Haven and Stamford, innovators are creating hundreds of jobs and fueling job growth,” Murphy said. “Entrepreneurs should be able to realize their dream of starting a business, and investors should be able to back these businesses without a bunch of unnecessary roadblocks in their way. I’m reintroducing the HALOS Act, because when startup companies grow – they grow fast. We should be doing everything we can to support small businesses and entrepreneurs.”
The reintroduced bill has bipartisan sponsorship from Democratic Sens. Brian Schatz of Hawaii and Kyrsten Sinema of Arizona and Republicans Thom Tillis of North Carolina and John Thune of South Dakota, as well as Toomey. A companion bill was introduced in the House of Representatives by U.S. Reps. Steve Chabot (R-OH) and Brad Schneider (D-IL).