A bill that would clarify federal rules related to holding bona fide “pitch” events is getting welcome congressional review, thanks to the Angel Capital Association and its affiliates. Pending before the House Financial Services Committee, which includes two members of Wisconsin’s House delegation, is HR 4498. The so-called HALOS Act makes it clear that state venture forums, university business plan competitions and other days are not “general solicitations” under SEC rules, and therefore don’t require that investors are verified as accredited investors through financial documents.
“It would be a true setback if early stage companies in Wisconsin were prevented from taking part in these kinds of events, which usually represent the first real chance for young companies to pitch their business plans and products to a live audience,” said Tom Still, president of the Wisconsin Technology Council, which is home to the Wisconsin Angel Network.
The Tech Council has contacted U.S. Reps. Sean Duffy, R-Wis., and Gwen Moore, D-Wis., to express support for the bill.