Nydia M. Velazquez: “When we think of a startup business, the early days of Apple or Google usually come to mind. Their stories are…”

“When we think of a startup business, the early days of Apple or Google usually come to mind. Their stories are familiar--hardworking entrepreneurs who beat the odds. Like these companies, most successful startups have several common ingredients: a new product or service, a willingness to take risks, and leadership that can navigate the complexities of today's economy. And successful firms also have a way of securing capital to both get off the ground and to grow. This last ingredient can present serious obstacles as startups face unique financing challenges. Many do not have positive cash flow, putting traditional bank loans out of reach. While some of these firms participate in incubator or accelerator programs that provide a small amount of seed capital, they must find new sources of funding when their initial capital runs out. One avenue for securing additional capital is by participating in demo days or pitch days. At these events, entrepreneurs have an opportunity to showcase their companies and innovations to potential investors. Today's bill will alter SEC rules to exempt the use of general solicitation for presentations made at demo days. In other words, demo day organizers will not have to comply with the usual procedures verifying that the investors they are attracting to the event are accredited.…”