Capital Gains Employee Hiring 
Feld Thoughts
SEPTEMBER 2, 2011
This week they set out to create their cap table and hire a CTO. Later, if they sell, the low tax basis and capital gains tax rates result in a lower tax liability than if they didn’t file the 83(b) election. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.
Steve Blank
OCTOBER 10, 2011
While the government says they love startups, the first thing they did this year is raise the capital gains tax. They’ve stopped hiring the best talent, and startups are not looking so risky compared to large companies. Many founders mentioned this as a reason not to incorporate or grow their companies in Finland.
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Feld Thoughts
MAY 9, 2011
Make it simple – eliminate capital gains if an individual (who is an accredited investor) invests equity (i.e. risk of 100% loss of investment) in a private company with less than 100 employees. The solution so far has seemed to be “hire more people to process more paper faster.&#
Steve Blank
APRIL 11, 2018
Companies: In the 20 th century when companies competed with peers with the same business model, they wanted employees to help them execute current business models (whether it was working on an assembly line or writing code supporting or extending current products). Venture capital flourished when the tax rates plummeted in the late 1970s.
paulgraham.com
SEPTEMBER 23, 2012
Should you hire another programmer? So youll be willing for example to hire another programmer, who wont contribute to this weeks growth but perhaps in a month will have implemented some new feature that will get you more users. Should you spend two days at a conference? Should you focus more on marketing? Should you add x feature?
VC Adventure
AUGUST 15, 2018
It was a benefit to employees and a slight value transfer from equity holders to option holders (generally speaking in M&A transactions the value of the aggregate option exercise ends up allocated across the rest of the cap table).
Both Sides of the Table
JANUARY 2, 2016
They get to have “long-term capital gains” taxes which are much lower than short-term capital gains taxes paid by people who have stock options or income taxes paid to workers. We invest large sums of our after-tax money into our funds and this gets a long-term capital gain tax rate when we make a profit.
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