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VCs are already investing more of their capital off-shore, this bill would further discourage them from investing in US startups.
by Serene 16y ago
VCs are already investing more of their capital off-shore, this bill would further discourage them from investing in US startups.
- kgrin 16y agoAs others have pointed out, this has little to do with the capital itself, but with the compensation that VCs get essentially as money managers. So the impact on actual investment is likely to be close to zero, even if there are reduced incentives to being a VC. Look at it this way - if a plague struck and killed one of every 10 VCs, chances are that the amount of capital wouldn't radically change - it would just mostly get reallocated among the survivors (I'm sure it would change in some marginal case, it might depend a bit on who the affected VCs were, etc.)