The House of Representatives may vote on the “Helping Angels Lead Our Startups Act” (HALOS Act – HR 4498) at some point this week. The bill was approved by the House Financial Services Committee this past March on a vote of 44 to 13.
The legislation, sponsored by Representative Steve Chabot (R-OH), would address a nagging issue regarding public pitch events. As it stands today, if an entrepreneur pitches his company to a group of potential angel investors in a public forum – they may be breaking the law prohibiting general solicitation under Reg D. Pitch events are a regular event at incubators and university campuses around the country today.
This common sense bill ensures that startup companies can connect with angel investors without inadvertently violating SEC rules.
The bill has a decent chance of passing the full House as it does have multiple Democratic co-sponsors.
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