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Swedish scientists successfully implant 3D printed human cartilage cells in baby mice

Swedish scientists successfully implant 3D printed human cartilage cells in baby mice

In what could potentially serve as a important moment in the quest to 3D print body parts, a team of scientists from Sweden’s Sahlgrenska Academy and Chalmers University of Technology have

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The days of Google Talk are over

The days of Google Talk are over

The days of

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Steve Mnuchin has been compromised (by robots)

Steve Mnuchin has been compromised (by robots)

Not to downplay the apparently imminent existential threat of global trade, but this time the call is coming from inside the house. Well, not the House, but the cabinet, where Treasury Secretary Steve Mnuchin has apparently begun to execute the will of our nation’s omnipresent AI-powered shadow government, one willfully ignorant quote at a time.

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How Trump will impact venture capital: The future of QSBS

How Trump will impact venture capital: The future of QSBS

Patrick Wallen Contributor

Patrick Wallen is a licensed attorney, a Fellow with Rubicon Venture Capital and a startup and VC professional.

When we speak of disruption in the startup industry, it would not be uncommon to invoke an innovative technology or a visionary founder. It is a rare occasion when we can celebrate legislators. Yet, some of the most recent strides in the emerging growth ecosystem are owed not to Silicon Valley programmers in their Spartan incubators, but instead to the U.S. Congress.

In my conversations with venture capitalists, bankers, founders and lawyers, I am frequently startled by the lack of awareness for a neglected bit of tax innovation ordinarily called QSBS, or qualified small business stock.

Accounting for only a few pages of legislation, this tiny tax provision has multi-million-dollar consequences and represents an aggressive policy favoring investors and entrepreneurs. QSBS allows these shareholders to avoid paying taxes when cashing out on their startup. For those savvy enough to take advantage of these rules, the enormous savings create powerful incentives for early-stage growth, the lifeblood of the Bay Area tech scene.

Consequently, it should be no small matter that the Trump administration may be rolling back the tide on one of the most important and one of the least understood measures impacting U.S. technology markets.

To help you better understand this provision, imagine you are an early employee of a startup and you received shares as part of your compensation package. Or perhaps you are a venture capitalist who received a preferred interest in exchange for investing in a seed or Series A round. Let’s suppose that after five years, the company goes public, the business is purchased or you decide to sell your interest on the secondary market. Chapter 26, Section 1202 of the tax code says that a gain from any sale of “qualified small business stock” will be partially excluded from capital gains treatment if the stock is eligible under its various subparts.

In general, if a company has raised less than $50 million, is a startup in the way we typically understand them and is still an active business, the stock would qualify when held for more than 5 years, and the proceeds from that sale would be partially excluded from capital gains! That was true until September 2010, when the exclusion increased yet again (with no AMT add back).

Initially intended to be temporary, in December of 2015, Congress signed the PATH Act (Protecting Americans from Tax Hikes), which revisited this decades-old tax policy. The rules, now permanent, provide 100 percent exclusion from capital gains for the proceeds from the sale of qualifying stock for any amount equal to the greater of $10 million dollars or 10 times the basis/your investment   —  not bad for government work .

The startup ecosystem would be wise to evaluate how these tax policies, and these investment incentives, will be affected.

The policy underlying this tax provision suggests investors have a greater pecuniary incentive to make risky

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Get your pitch applications in for the Boulder Micro-Meetup

Get your pitch applications in for the Boulder Micro-Meetup

A remind that I’ll be holding a micro-meetup at Boomtown on Broadway in Boulder, Colorado on Wednesday, March 29th at 7pm.

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