QSBS is popping up more and more these days, whether in M&A transactions, IPOs, regulatory changes, politics, entrepreneurship and in many more areas. Here are some of the recent developments we are following.
Can foreign founders benefit from QSBS when moving their companies to the US? (5/8/2025) - Many non-U.S. startup founders initially incorporate in their home country but later reincorporate or create a subsidiary in the U.S. to access venture capital financing and a larger customer base. This trend is common among tech startups and businesses seeking global expansion. Additionally, the Trump administration’s new tariff policies have prompted certain companies to examine… Read MoreBreaking Down the Implications of Trump’s Executive Actions for VC Firms in 2025 (4/30/2025) - In early 2025, President Trump deployed a series of executive orders that could reshape regulations—and even deregulate—various sectors. These policy changes may significantly impact the venture capital (VC) ecosystem by opening new avenues for investment while also presenting challenges that stakeholders should consider. Many investors believe these policy changes could be very good for VC… Read More
Can too much inventory hurt a company’s QSBS prospects? (4/15/2025) - Under IRC Section 1202(e), at least 80% of a company’s assets must be actively utilized in a “qualified trade or business”. To ensure that assets are being actively deployed towards the qualified trade, a limitation exists on the amount of working capital that can be held (IRC Section 1202(e)(6)), whereby no more than 50% of… Read More
Top 5 QSBS items in preparation of your financing round with SeedLegals (3/21/2025) - In preparing for a financing round, most of the focus lands on deal terms, valuations, and investor outreach. But one of the most powerful long-term tax advantages is often overlooked: Qualified Small Business Stock (QSBS) treatment. To help founders, investors, and advisors navigate QSBS during financings, QSBSExpert.com and SeedLegals partnered to explore 5 key areas… Read More
OTA Releases Tax Report on QSBS Statistics (3/20/2025) - In January 2025, the Treasury Department's Office of Tax Analysis (OTA) released data quantifying QSBS claims. This is the first such report to quantify the volume of QSBS claims, and provides insights that can be useful in understanding the impacts of QSBS on economic activity. This study examined individual e-filed tax filings and QSBS claim… Read MoreClearer Paths to QSBS Eligibility: What the AICPA Wants You to Know (3/13/2025) - 26 U.S. Code Section 1202—“Partial Exclusion for Gain from Certain Small Business Stock,” better known as QSBS—offers plenty of upside for small businesses and investors. However, the legislation also contains a great deal of ambiguity, resulting in confusion among qualified small businesses and their investors. This uncertainty is why the American Institute of Certified Public… Read More
Detroit: Leveraging QSBS & Tax Incentives for Mobility Innovation and Beyond (3/4/2025) - Detroit is no longer just the Motor City—it’s quickly becoming a formidable contender in the startup investment landscape, according to the 2024 Rise of the Rest report by Revolution. Revolution, a D.C.-based investment firm, supports entrepreneurs building transformative companies outside of Silicon Valley through its family of funds—Rise of the Rest Seed Fund, Revolution Ventures, and… Read More
A Deep Dive Into Revolution’s 2024 Rise of the Rest Report and Its Implications for QSBS (2/18/2025) - The venture landscape is changing. Revolution, a D.C.-based investment firm focused on backing transformative companies outside Silicon Valley, recently released its latest Rise of the Rest report, highlighting a major trend: in 2024, $16.82 billion in capital flowed beyond traditional coastal hubs. Through Rise of the Rest, Revolution's seed-stage fund dedicated to emerging markets,… Read More
Will America Continue to Drive Global Innovation? The Potential Cost of Curtailing QSBS (2/6/2025) - As talks about extending the Tax Cuts and Jobs Act (TCJA) heat up, policymakers are examining different tax policy changes to help balance the budget. Yale’s Budget Lab is studying various potential focus areas and, on January 24, 2025 zeroed in on Section 1202 of the Internal Revenue Code (IRC)—the Qualified Small Business Stock (QSBS)… Read More3 Fastest Growing Industries for Startups in 2025 and Beyond (2/3/2025) - The 2020s have been rife with business, political, and economic disruptions that completely reshaped daily life and the economy. The investing landscape of 2025 promises unique opportunities for startup investing, driven by new disruptors entering the market to meet strong demands for both physical and digital goods and services. Startups in certain industries form… Read More
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