House Passes HALOS Act to Address Demo Day Securities Law Issues

On Jan. 10, 2017, the U.S. House of Representatives passed the Helping Angels Lead Our Startups Act (H.R. 79). The HALOS Act, as it is known, would require the U.S. Securities and Exchange Commission to make its prohibition against general solicitations inapplicable in certain circumstances.

Currently, startups wanting to pitch their businesses in public must show that those in attendance have a relationship with the startup outside its capital raising activities, or risk running afoul of securities laws. This can be a huge burden for companies who participate in “demo days” or similar showcase events. Read more.