HALOS Act of 2025 Helping Angels Lead Our Startups Act of 2025
By clarifying the definition of general solicitation in relation to events sponsored by state and federal bodies, educational institutions, and nonprofit organizations, HB3352 aims to broaden the avenues available for startups to obtain funding. The bill requires that the SEC amend its existing regulations under Regulation D, particularly concerning what constitutes acceptable communication during investment presentations. Consequently, this legislation could ease restrictions that have historically limited the ability of startups to engage with potential investors, ultimately enabling a more dynamic funding ecosystem for new enterprises.
House Bill 3352, titled the 'Helping Angels Lead Our Startups Act of 2025' or the 'HALOS Act of 2025', addresses the rules around general solicitation and advertising related to securities. The bill mandates that the Securities and Exchange Commission (SEC) revise its regulations to permit presentations or communications from issuers at specific types of events where multiple issuers are allowed to participate. This change is aimed at facilitating funding opportunities for startups through angel investor groups and other similar organizations, fostering a more accessible environment for emerging businesses to secure investment.
Despite the positive outlook for increasing startup funding through HB3352, there are potential points of contention surrounding the regulation amendments. Critics may argue that easing restrictions on general solicitation could lead to an influx of unqualified offerings and may expose investors to higher risks. There is also the possibility of conflicting interests where private entities could misuse these regulatory changes, making it necessary for the SEC to enact safeguards. Ensuring that compliance measures are robust enough to protect investors while fostering innovation and investment will be a key challenge moving forward.