Zoran Basich's article "Is Valuing a Young Start-Up More Art or Science?" that appeared yesterday on the Wprovides an interesting look at how venture capitalists value startup companies. The article profiles Pinterest and the valuation methodology used by seed investor FirstMark Capital for the seed round. Its a good read. Here's the link: http://blogs.wsj.com/venturecapital/2012/09/27/is-valuing-a-young-start-up-more-art-or-science/
A recent article from the Tech Europe section of WSJ.com "London Aims to Make Tech IPOs Easier" looks at some of the proposals being considered to make it easier for tech companies to launch their initial public offerings in London, and to make London the high-tech capital of Europe. UK regulators have looked at the recently-enacted US law Jumpstart Our Business Startups (JOBS) Act for ideas on how to smooth the IPO process for growing tech companies. The two main proposals being considered are (1) allowing companies to list a smaller proportion of their shares in an IPO; and (2) reduced reporting requirements for a period of time.
Americans have a long history of structuring their finances in order to minimize their tax obligation. One of my favorite legal quotes is from Supreme Court Justice Learned Hand, who said: "Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes." Helvering v. Gregory, 69 F.2d 809, 810-11 (2d Cir. 1934).
Management fee waivers are a tax-minimization strategy employed by private equity firms to essentially have management fee taxed at capital gains rates rather than at ordinary income rates. There's a recent article from NY Times DealBook called "What's at Issue in the Private Equity Tax Inquiry" that provides a good overview of management fee waivers and why the New York Attorney General is reportedly investigating the practice.
Here's the link:
NY Times DealBook has a good article that was posted yesterday. In "Multinationals Stake a Claim in Venture Capital" author Evelyn Rusli explores the expansion of corporate venture capital programs by multi-nationals. This is a trend that has been developing for a long time, and the article does a good job explaining the trend. Here's the link: http://dealbook.nytimes.com/2012/09/03/multinationals-stake-a-claim-in-venture-capital/
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