The HALOS Act Reduces Regulatory Barriers for Startup Businesses
Today, with a large majority of New Dem Members’ support, the House passed Helping Angels Lead Our Startups (HALOS) Act introduced by New Dem Rep. Krysten Sinema (AZ-09) and cosponsored by New Dem Reps. John Delaney (MD-06), Scott Peters (CA-52), Jared Polis (CO-02), and Brad Schneider (IL-10). This bipartisan bill, highlighted in the New Democrat Prosperity Agenda: Winning the Future, will reduce regulatory barriers between startup businesses and potential investors during “demo days.”
The bill would clarify SEC regulations to ensure small businesses can participate in educational “demo days” without the having to verify that attendees are accredited investors. “Demo days” are vital to startup growth, so it’s increasingly important to set up a clear path for startup businesses to grow and succeed. The HALOS Act clarifies the definition of general solicitation to exempt communications and presentations at events, preventing unintentional violation of the rules.
The bill passed the House with a large majority of New Dem support in the 114th Congress and the bill as introduced by New Dem Rep. Brad Schneider in the 113th Congress.
“I’ve heard from Arizona innovators and startups across the country who are working hard every day to turn their good ideas into successful small businesses,” said Congresswoman Sinema. “The HALOS Act is a bipartisan solution that provides a clear path for startup businesses to connect with angel investors and venture capitalists without the burden of unnecessary regulation and red tape. I’ll continue working with my colleagues on both sides of the aisle to support small businesses and help our economy thrive."
“Startups are a tremendous source of dynamic growth and new jobs for our economy, but certain regulations have had the unintended effect of limiting their access to critical capital by placing burdensome restrictions on events where entrepreneurs can introduce their business ideas to potential investors,” said Congressman Schneider. “The HALOS Act helps remove this roadblock, ensuring entrepreneurs and investors can connect more easily, while still maintaining important investor protections. I was proud to introduce this bipartisan, commonsense bill during my first-term in Congress, and appreciate the work of my colleagues on both sides of the aisle who continued to advocate for its passage.”
The HALOS Act will strengthen the progress already made by the JOBS Act’s and allow startups to connect with investors and venture capitalists to build their business. With the HALOS Act, American entrepreneurs can create quality jobs and build the nation’s economy.
Next Article Previous Article