Some interesting links we found across the web this week:
Startup Employees Should Pay Attention to Biden’s Capital Gains Tax Plans
The Biden Administration proposed significant changes to the capital gains tax. While we do not know what will end up in a passed bill, startup employees may want to pay close attention to these changes. Historically, long-term capital gains, or gains on assets held for over a year, have enjoyed preferential tax rates in comparison to short-term capital gains, which are assets held for less than a year. If President Biden’s proposed changes are enacted, those who make more than $1 million on the sale of their shares will no longer enjoy the preferential tax rates. If you own securities in a startup, this TechCrunch article is a great starting point to learn about the proposed changes to the capital gains tax treatment.
Foreign Entrepreneurs to Gain More Access to Immigration Program
The Biden Administration plans to revive the International Entrepreneur Rule, enacted during the final days of the Obama Administration and subsequently dismantled by the Trump Administration. The International Entrepreneur Rule allows non-US entrepreneurs to work in the US for up to five years, so long as their startups attract at least $250,000 in US venture capital, hire 10 employees or meet other benchmarks. Currently, the US has no visa available for startup founders and the plans to revive the International Entrepreneur Rule is receiving bipartisan support. Read more in this Wall Street Journal article.
Advanced Tax Strategies for Startup Founders
You may be business savvy, but have you closely examined your equity ownership? Many founders often neglect tax strategies to maximize the value of their equity ownership. This article from TechCrunch provides helpful summaries all founders should consider, especially since many of the tax strategies are most effective when planned in advanced.
My Startup Tripled in Size in 2020: Here’s What I Learned
Thierry Schellenbach, CEO and co-founder of Stream, recaps the lessons he learned after following up a $15 million Series A financing with a $38 million Series B financing six months later. He discusses in this NextWeb article the challenges behind his successful scale of his company. Mr. Schellenbach summarizes the resounding lessons as “pause, assess, and move forward with intention.”
The 15 Largest Global Startup Funding Rounds of April 2021
AlleyWatch shares the top 15 global startups that raised the largest venture capital financing.