BGOV Bill Analysis: H.R. 3352, Startup Investment Solicitations

Startups and small businesses seeking to raise capital could present at industry “demo days” targeting angel investors without being subject to additional securities regulations under H.R. 3352.

The bill would direct the Securities and Exchange Commission to exclude discussions at certain investor events from rules that prohibit companies exempt from SEC registration from soliciting or advertising securities to the general public. This change would effectively codify a 2020 SEC rule that allowed presentations at demo days to qualifying for an exemption.

“By ensuring that demo days are not treated as securities offerings, we’re clearing a path for startups to ...