Venture Capital

Venture Capital

Venture capital firms face unique opportunities from a tax perspective. Whether the fund focuses on seed investments or later stage investing, domestically or abroad, the complexity created by the ever-changing and increasingly complex tax laws provides venture fund managers with opportunities to invest in start-ups in a highly tax-efficient manner.

Our professionals have extensive experience assisting venture capital funds and their partners and are fluent in multiple aspects of venture investing. 

Our comprehensive, practical approach focuses on the funds, their investments, and investors, as well as their general partners, assisting them in planning for and making decisions that will help them achieve their goals on a tax-efficient basis. 

Whether launching fund I or fund XV, our advisors have worked with venture capital funds of all sizes and ages to provide guidance on the following:

• Tax structuring with respect to fund formation and related management and general partner vehicles.
• Review and analysis of the tax provisions within legal documents including the distribution and allocation waterfalls.
• Tax consideration and structuring around warehouse investments.
• Strategies for carried interest including analysis of prospective legislation.
• Qualified small business stock (QSBS) planning.
• Review and analysis of the tax treatment of Simple Agreement for Future Equity (SAFE).
• Structuring and planning for international investments and investors, including foreign disclosure and withholding requirements.
• Portfolio company level transaction advisory services for mergers, acquisitions, and dispositions.
• Planning for cash and stock distributions and exits.
• Independent valuation analyses of portfolio companies, stock, and other assets.