Investors in startups are looking for a potential 10x-30x return on their investment. We aren't talking about razor thin margins in this equation. While it is

Investors in startups are looking for a potential 10x-30x return on their investment. We aren't talking about razor thin margins in this equation. While it is of course true that they will have to make more pre-tax to come out with the same amount post-tax, I don't think it drastically changes investors motivation to invest. Also, where else will they invest their money. The capital gains tax applies to lots of types of investments, so the risk/reward balance versus other types of investments is still the same.