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WASHINGTON – Startup companies will find it easier to attract investments that allow them and other small businesses to grow and create jobs under bipartisan legislation passed by the House 325-89 on Wednesday. The Helping Angels Lead Our Startups Act (HALOS Act) defines an “angel investor group” and clarifies a regulation issued by the Securities and Exchange Commission about when a business can make a presentation to interested parties without running afoul of the securities laws. “Our economy works better for all Americans when small businesses can focus on creating jobs rather than navigating bureaucratic red tape. Angel investors provide early-stage capital for a startup, so access to the broadest pool of potential investors is vitally important for smaller companies. The HALOS Act fixes a regulatory overreach so it will be easier for small businesses to attract early-stage investment,” said House Financial Services Committee Chairman Jeb Hensarling (R-TX). Angel investors fund early-stage entrepreneurs. Access to such potential investors is important; in 2014, angels invested approximately $24 billion in more than 73,000 startup businesses. Companies such as Amazon, Costco, Facebook, Google, and Starbucks were initially funded by angel investors. The Financial Services Committee passed the bill in March by a vote of 44-13. The HALOS Act is sponsored by House Small Business Committee Chairman Steve Chabot (R-OH). Original co-sponsors of the bill are Reps. Robert Hurt (R-VA) and Kyrsten Sinema (D-AZ) of the Financial Services Committee and Mark Takai (D-HI).
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