Six Congressmen Introduce HALOS Act to Protect Demo Days
We wouldn’t be wasting our lobbying dollars and good will if there were no issues with these events as things now stand…
U.S. Senator Chris Murphy joined U.S. Senators John Thune , Pat Toomey and Brian Schatz as well as U.S. Congressmen Brad Schneider and Steve Chabot to introduce legislation that would remove the overwhelming restrictions from individuals who want to invest in startups.
“Demo days” are a way for a startup to secure capital to grow the business and entrepreneurs commonly attend these events allowing them to showcase their business model in front of valuable startup investors, such as “angel investors” – investors in startup companies – and venture capitalists.
New Securities and Exchange Commission (SEC) regulations, initiated by the JOBS Act, have put angel investors participating in demo days at risk of being forced to turn over extensive personal financial details to an onerous new third-party vetting process. This invasion of privacy deters many investors from backing startups when they need support to grow their businesses the most.
The Helping Angels Lead Our Startups (HALOS) Act would lift this restriction and instead allow the same investor vetting process that angel investors have been using at demo days for years. The HALOS Act essentially will remove these restrictions allowing startups to continue to get the investments they need to grow the business and create jobs.