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For public sector roles, such as government employees, teachers, and firefighters, DB pension funds are still the norm, and many public pension funds still invest in VC funds (though some of these are very large entities, making scale an issue, which I’ll discuss more below).
For public sector roles, such as government employees, teachers, and firefighters, DB pension funds are still the norm, and many public pension funds still invest in VC funds (though some of these are very large entities, making scale an issue, which I’ll discuss more below).
Yes, income inequality exists and yes it’s a natural consequence of capitalism and other forms of government are decidedly worse than capitalism because they inefficiently create and allocate resources. VCs also get capital gains tax rates on “carriedinterest,” which is what irritates the masses.
My partner Jason has an impassioned post up about the carriedinterest debate currently taking place in Congress. While I wouldn’t say that I’m a “fan” of government, I’ve always been of the mind that some level of government safety-net is appropriate. Obviously this issue is important to me and to all VCs.
And that’s why I’m challenging our government to regulate them. When she asked what would I recommend my response wasn’t about getting rid of carriedinterest or breaking up the big companies but about customer support. But they won’t help us navigate through this new world they’re creating. They want DMCA safe harbor?
VCs tend to gain most of their returns through carriedinterest- a percentage received as compensation from the profits of a hedge fund or private equity. As business grows, the ever-growing laundry list of government regulations they are expected to follow grows. Driving sponsorships for your startup is a numbers game.
to spur innovation was a new government agency to fund new companies. government would invest three (up to $300,000.) And for the first time, private companies like Continental Capital, Pitch Johnson & Bill Draper and Sutter Hill were formed to take advantage of the government largesse from the SBA.
A huge cleantech boom occurred and battery companies like A123 went public along with biofuels companies like Amyris, Gevo, and others, though in retrospect this was more of a bubble driven by unsustainable government subsidies (A123 is bankrupt and the biofuels companies trade at a fraction of their IPO valuation). So at a fund level (e.g.
Last year, I went to an National Venture Capital Association dinner where the President of the organization, Bobby Franklin, spoke about all the great things our lobbying group was doing for VCs—like keeping our carriedinterest tax loophole.
4) We need to push the Federal Government to close the carried-interest tax loophole —but we should do it in such a way where the localities where it gets collected get a share of the income from it. Closing the carriedinterest tax loophole is something Trump said he was going to do when he campaigned.
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