3 ms·
Taking 1/5 of every startup from the beginning is a great way to get every entrepreneur to found their company in another country.
by Aurornis 6mo ago
Taking 1/5 of every startup from the beginning is a great way to get every entrepreneur to found their company in another country.
- skybrian 6mo agoLet’s say it’s voluntary and it only applies to whichever class of stock you designate, which can be non-voting. You use it for employee stock or to sell stock to investors who want a tax-free investment. I think investors would pay more for the shares.
- jfengel 6mo agoIf other countries were that friendly to startups, people would already be doing it. Startups get done in the US because of the network effect: this is where the other startups are, and where the people who fund startups are. It's hard for them all to de-camp at once to a different country, especially since most of the countries they'd want to go to already have higher taxes than the US. There's probably some limit beyond which people would leave anyway -- presumably, lower than 100%. I don't know if they'd leave over 20%. But I bet you could demand a 5-10% stake, and get many threats but few actual departures.