Engine applauds the U.S. House of Representatives’ passage of the Helping Angels Lead Our Startups (HALOS) Act. The bill, which was approved by a wide margin of 325-89, would clarify regulatory ambiguities around general solicitation, making it easier for startups to publicly showcase their ideas without unintentionally running afoul of securities laws.
“Pitch events are happening around the country every day at accelerators, incubators, and universities. Even the White House hosted its own ‘Demo Day’ last year. For the startups that Engine works with, these events have become one of the most promising opportunities to promote their product or technology, raise seed capital, and meet potential investors or customers,” said Engine Executive Director, Evan Engstrom.
“Right now, startups have to worry about accidentally breaking the law if anyone in the audience at one of these events is not an accredited investor. This is an outdated requirement that just doesn’t make sense in today’s environment. The HALOS Act will bring much needed clarity for startups and ensure they are able to participate in public pitch competitions and demo days without breaking the law.”
Engine hopes that the Senate will take up and pass the HALOS Act in the coming weeks.
Read our blog post on the HALOS Act here.
Read our letter in support of the HALOS Act here.