HALOS Act of 2023

The HALOS Act of 2023, also known as Bill 118 s 3298, is a piece of legislation introduced in the US Congress aimed at promoting small business growth and entrepreneurship. The bill seeks to amend the Securities Act of 1933 to provide for an exemption from the registration requirements for certain events known as "demo days" or "pitch events" where entrepreneurs can present their business ideas to potential investors.

Under the HALOS Act, these demo days would be exempt from the registration requirements of the Securities Act as long as certain conditions are met, such as the event being sponsored by a college, university, nonprofit organization, or government entity. This exemption is intended to make it easier for small businesses to connect with investors and raise capital without the burden of costly and time-consuming registration requirements.

The bill also includes provisions to protect investors by requiring that the entrepreneurs participating in these demo days provide certain disclosures about their business and the risks involved. Additionally, the HALOS Act prohibits fraudulent or deceptive practices in connection with these events to ensure that investors are not misled. Overall, the HALOS Act of 2023 aims to support small business growth and innovation by streamlining the process for connecting entrepreneurs with investors while also protecting investors from potential fraud.