Another benefit for family offices of being first-close or anchor in US early-stage funds is that the QSBS exemption on future cap gains is only available to investors committed to the fund before the exempt investment. If the fund begins deploying first-close capital, "regular" LPs do not get the QSBS tax benefit on the fund's early investments.
Liked this! Wish more LPs thought deeply about their position and role on the cap table.
Congrats on this first anchor check!
Another benefit for family offices of being first-close or anchor in US early-stage funds is that the QSBS exemption on future cap gains is only available to investors committed to the fund before the exempt investment. If the fund begins deploying first-close capital, "regular" LPs do not get the QSBS tax benefit on the fund's early investments.
Excellent point and huge incentive for US tax payers.