U.S. Senator Chris Murphy (D-Conn.) today joined other Senators and Congressmen to introduce legislation that would remove burdensome restrictions from individuals who want to invest in startups.
In order for a startup to secure capital to grow the business, entrepreneurs commonly attend “demo days”, which are conferences that allow startups to showcase their business model in front of valuable startup investors, such as “angel investors” and venture capitalists. New Securities and Exchange Commission 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.
The Helping Angels Lead Our Startups (HALOS) Act would lift this burdensome restriction and instead preserve the same investor vetting process that angel investors have been using at demo days for years. By removing these restrictions, the HALOS Act will allow startups to continue to get the investments they need to grow the business and create jobs.