Nagpal: Founders should wait until Series A or B to stack QSBS
Ankur Nagpal · How to Maximize The Value of Your Startup Equity · Nov 15, 2023 · at 8:44
Ankur Nagpal shares a framework on the right startup stage for founders to invest time and legal costs into stacking QSBS tax exemptions.
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“Then you don't have to think about this, I would say, till maybe year three. I find, ideally, like, between your series A and B, it might be worth thinking about how to multiply QSBS if you were to get there. Any before, and it's too soon, because honestly, like, I know some people, they don't have product market fit and they've set up for trust, right? And it's like, what are you, like, building a startup is really hard. Get to a point where the likelihood of you having an exit is, you know, 3040, 50%, and then it's worth the effort. So it doesn't make sense to do it up front, but I would say before a series B, it may make sense to look into a lot of this.”
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