Sens. Toomey, Murphy announce bill to support investment in startups

U.S. Sens. Pat Toomey (R-PA) and Chris Murphy (D-CT) recently announced the introduction of legislation that aims to provide support to small businesses by removing restrictions from individuals who want to invest in startups.

U.S. Sens. Brian Schatz (D-HI), Thom Tillis (R-NC), Kyrsten Sinema (D-AZ), and John Thune (R-SD) cosponsored the Helping Angels Lead Our Startups (HALOS) Act.

To secure capital to grow their businesses, many entrepreneurs attend “demo days,” conferences where they showcase their businesses to angel investors and venture capitalists. Current restrictions deter angel investors from attending demo days, Murphy said.

The HALOS Act would remove restrictions to make it easier for startups to get investments to grow their business while preserving investor vetting processes.

“My brothers and I used our savings to open restaurants in the Lehigh Valley and Lancaster. We worked day and night to make them a success and eventually created hundreds of jobs,” Toomey said. “Entrepreneurs face a unique set of risks and challenges when starting a business. By expanding access to capital, startups are better equipped to immediately innovate, hire more workers, and ultimately succeed. The HALOS Act would go a long way in accomplishing this goal.”

U.S. Reps. Steve Chabot (R-OH) and Brad Schneider (D-IL) introduced the HALOS Act in the U.S. House of Representatives. The House advanced the bill in the 115th Congress.