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Is there a big problem with investors not being incentivized to invest in startups? I’m not really hooked into things these days but pre-pandemic seemed like pr

by agency 5y ago

Is there a big problem with investors not being incentivized to invest in startups? I’m not really hooked into things these days but pre-pandemic seemed like probably the best time in history to raise money as an early stage startup and I can’t imagine that reducing or taking away QSBS would meaningfully affect that. VC firms seem to be doing just fine.

griffinkelly 5y ago
If you're investing in startups because its your hobby, as many do, no tax break is going to change that. As for others, if you're looking for returns and have the option to be an LP in a VC, make angel investments, or just park your money in the S&P500, a few of those options look more promising. While everything does have inherent risk, it is an added benefit to angel investing that you get QSBS, while being an LP or investing in the S&P necessarily don't have the same tax benefits. Incentivizing investment in small & new businesses is probably a better thing than just having the ultra wealthy invest in AT&T.