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

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.