WASHINGTON – U.S. Senators Chris Murphy (D-Conn.), John Thune (R-S.D.), Brian Schatz (D-Hawaii), Pat Toomey (R-Pa.), and Heidi Heitkamp (D-N.D.) reintroduced on Thursday the Helping Angels Lead Our Startups (HALOS) Act, legislation that would support small businesses and help create local jobs by removing burdensome restrictions from individuals who want to invest in startups. In order for startups to secure capital and grow their businesses, entrepreneurs often attend “demo days”, or conferences to showcase their business model in front of investors like “angel investors” and venture capitalists. It is estimated that angel investors provide 90 percent of outside equity to help grow these young businesses. Unfortunately, recent regulations now require excessive hurdles for angel investors, deterring them from participating in demo days. The HALOS Act would preserve important investor vetting processes without forcing startups to jump through unnecessary hoops   to get the investments they need to grow and create new jobs.

Startups are proven job creators. In 2010, companies in their first year created an average of 3 million jobs.

“When startup companies grow, they grow fast – but without investors and access to capital, that growth simply won’t happen,” said Murphy. “I’m reintroducing the HALOS Act because the most important thing we can do to help local entrepreneurs is knock down road blocks and make it easier for angel investors to put capital behind them. I won’t stop fighting until this bill becomes law.” 

“Angel investors can be an essential link between an entrepreneur’s idea and a successful business venture,” said Thune. “The HALOS Act would cut red tape and encourage these investors to help business startups get off the ground. I’m proud to introduce this bill with my colleagues because supporting small businesses, the backbone of our economy, will strengthen Main Streets in South Dakota and around the country.”

Schatz said, “In Hawai‘i, start-ups focused on tourism, energy, and technology are creating jobs and spurring innovation—and these are outcomes we should support, not restrict. Our legislation will strip away unnecessary restrictions so that angel investors can more easily fund the small businesses and entrepreneurs that make our communities stronger.” 

“I started a chain of restaurants in Allentown in 1990 with two of my brothers,” said Toomey. “We used our own savings to fund the start-up costs and worked day and night and eventually created hundreds of jobs in the Allentown and Lancaster region. So I understand the unique struggles, uncertainties, and risks involved in starting one's own business. We can make it easier to be innovative. I am pleased to join with Sen. Murphy and our colleagues to propose a bill that will make it easier for startups and angel investors to connect and work together to grow their businesses and hire more workers.”

“North Dakota’s burgeoning startup and small business communities are inventing, innovating, and paving the way for exciting new opportunities in the heartland – but too often, they’re unable to access the investments they need to get going,” said Heitkamp. “We can do more to encourage investments and growth in our rural entrepreneurs, where early stage funding can be tough to come by. And we can do it by making it easier for entrepreneurs seeking early stage investment to present their ideas to prospective investors at road show events without running afoul of the securities laws.”

The U.S. House of Representatives passed the bipartisan HALOS Act in January. 

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