In a move to bolster entrepreneurial growth, Senators Ruben Gallego (D-AZ) and Pete Ricketts (R-NE) have come together in bipartisanship to introduce the Helping Angels Lead Our Startups Act. This legislation is designed to streamline connections between innovators and the investors who can bring their visions to life. The essence of the Helping Angels Lead Our Startups Act is to minimize the red tape entrepreneurs currently face when trying to woo investors at "demo days" and similar events, as detailed by the Senator Ruben Gallego's Office official website.
Senator Ruben Gallego's Office highlights the struggles that entrepreneurs face under the current regulatory environment. "Entrepreneurs often attend demo days to share their ideas and attract investors, but confusing and outdated rules make it hard to do that without worrying about violating securities laws," Gallego stated. The Helping Angels Lead Our Startups Act aims to change that by updating rules that, according to the lawmakers, have unnecessarily hampered the optics and reach of startups in places like Arizona and Nebraska. Senator Ricketts echoes this sentiment, adding that the act will aid in "maintaining America's technological edge."
The proposal has also garnered support from the National Venture Capital Association (NVCA), whose President & CEO, Bobby Franklin, commented on the potential benefits of the legislation. "NVCA strongly supports the bipartisan HALOS Act, which removes unnecessary regulatory barriers that can complicate participation in Demo Days and hinder early engagement between entrepreneurs and investors," said Franklin. According to the Senator Ruben Gallego's Office statement, the act will stimulate capital access and invigorate the startup ecosystem nationwide.
The HALOS Act helps startups show their products and ideas without breaking federal rules about “general solicitation.” It sets clear rules, like not advertising investment terms and making sure event sponsors don’t give investment advice. The National Venture Capital Association supports the act because they believe it will make it easier for startups to attract investors, create jobs, and encourage growth, as per the Senator Ruben Gallego's Office.
