NVCA President and CEO Bobby Franklin outlines the United States' recent share of total worldwide venture capital investment.
Opinion
Franklin: Typical lawmakers cannot distinguish venture capital from private equity
“If I were to ask the, whatever the typical staff or the typical member of Congress was, if they weren't on a committee that, like a banking committee or financial services committee or something like that, if I were to ask them, what do you know about venture …”
Opinion
Franklin: Taxing paper wealth will disproportionately harm startups
“If we start, as, you know, policymakers start trying to reimagine tax schemes from an income tax world to a, you know, what are you worth on paper world, that's going to have a disproportionate impact on the entrepreneurial ecosystem”
Assertion Partly supported
Franklin: House Passed Bill Raising VC Non-Qualifying Cap to 49.5%
“And we have legislation that we've made it through the House of Representatives on a bipartisan basis. Now we're trying to get it through the Senate, and it would move that 20% bucket Of secondaries and fund-to-fund activity up to 49 and a half percent.”
Assertion Supported
Franklin: NVCA secured phased QSBS tax exclusions in federal legislation
“So we had recommended making improvements to qualified small business stocks. So you didn't have that five year cliff. And we made the argument that companies might be making bad business decisions because they're waiting for this five years. What if we phased…”
Assertion Not checkable as stated
Franklin: 1970s tax and ERISA reforms catalyzed modern venture capital
“Most people point to the birth of the modern day venture industry, to two policy decisions that were made in the seventies. One was to lower the capital gains rate so that there was a greater differential between ordinary income rates and capital gains tax rat…”
Insight
Franklin: Venture capital operates as outsourced R&D for industry
“This is, Essentially the outsourced R&D arm of every industry. And I think, you know, it's important to remind policymakers of that. There's no more Bell Labs. You know, there's no more all the innovation happens in some lab and some big Fortune 500 company. T…”