Leveraging Aumni Analytics for QSBS


The rise of venture capital investment opportunities on the national and global stage has created a need for early-stage investment platforms. These investment platforms and firms offer a centralized environment for investors to pool venture capital. Early-stage investing firms are already investing in many hopeful and promising startups; this eliminates much of the tedious initial groundwork in researching individual startups for investors. Also, these investing platforms can act as advisors but without all the accumulating fees and with the added advantage of potential QSBS tax exemption benefits.     

Aumni’s Specialized Investment Analytics

While Silicon Valley is the epicenter of the startup investing ecosystem, there is a fresh Utah-based company that’s making some waves in the industry. Aumni is an early-stage investment platform that was founded in 2018 by two former Big Law corporate attorneys. The company specializes in investment analytics that aid the private capital investment marketplace, including corporate venture firms, university endowments, venture funds, and family offices. 

Aumni offers a combined human and AI-generated solution to the heavily detailed and nuanced world of legal qualifications and tax codes within investing. Aumni’s specialized analytics process begins with venture capital attorneys reviewing documents, three-times over and in close detail. Then, Aumni’s AI software analyzes thousands of data points to compile helpful and relevant portfolio information. Aumni makes the information available on a web-based dashboard, where it can be easily accessed by users and members.

Aumni and QSBS

Aumni’s advancements in investment analytics, management, and reporting has the potential to help uncover data in investment portfolios in brand new ways. Accessing this data can help investors see the big picture of their portfolio performance with the intricate details of their investment rights and regulations. These advanced analytics can also aid in the overall startup investment landscape by more easily tracking long-term investment insights, such as evolving investment patterns in the private startup capital marketplace.

Innovations in investment methodology has investors asking two questions about how Aumni’s investment analytics can help their companies and venture capital investments: 

  1. What is QSBS and QSBS eligibility requirements?

Qualified Small Business Stock (QSBS) regulations are located in Internal Revenue Code (IRC) Section 1202. They include criteria for both the corporation to qualify as a Qualified Small Business and for the investor to determine how much of their gain may be eligible for tax exclusion. QSBS eligibility provides up to a 100% tax exclusion of capital gains.

For a stock to be eligible, a company must meet specific criteria, including:

  • The company must be a domestic C-corporation.
  • The company must have less than $50M in gross assets.
  • The company must be active in a qualified business or trade.
  • The stock must be directly issued by the qualified company and must be held for a minimum of five years. 

A company may be considered QSBS-eligible if it meets these requirements. Identifying which securities are QSBS is an essential first step for venture capital investors. Understanding QSBS eligibility before and during stock ownership can aid investors in navigating the tax exemption process with confidence. It’s also necessary to manage and document QSBS eligibility and requirements over the life of investment stock in case of an audit.

  1. How can Aumni Investment Analytics help venture capital investors claim QSBS qualifications and exemptions? 

This question is important for investors to answer before beginning a business venture on an investing platform.

Aumni extricates and evaluates large amounts of critical investment data that can sometimes be found within lengthy legal agreements. Aumni is able to evaluate these investment data points by using human knowledge mixed with AI technology. An article published on August 26th, 2021, in Utah Business reports that Aumni has analyzed over 100,000 investment transactions since their launch in 2018. 

This combination of human expertise, technology, and advanced investment tracking analytics gives the capability of generating important information that may help Aumni’s investors take part in Qualified Small Business Stock (QSBS) incentives to exclude capital gains taxes.

Claim with Confidence

Many companies and investors today are unaware of the benefits QSBS provides. Leveraging data found in Aumni’s reports may help companies identify QSBS opportunities and the ability to exclude up to 100% in capital gains exemptions. However, there could always be more done to ensure tax savings, such as QSBS, is satisfied with supporting documentation.

The CapGains platform is designed to help answer the necessary questions to help ensure your shares are indeed QSBS eligible, including whether or not the company issuing the stock was a Qualified Small Business at the time of issuance. Our team is ready to provide guidance throughout the entire lifetime of your eligible stock.

If you would like to learn more about how CapGains can help leverage your Aumni data to explore QSBS eligibility, we are here to help. Contact us today.

This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.

About QSBS Expert

QSBS Expert was founded by a group of entrepreneurs, investors, accountants and lawyers who came together when trying to navigate a QSBS situation of their own. We quickly realized that the regulations left a lot of open questions and the publicly available information was confusing to sift through…so we thought that others may also benefit from having a “go to” resource for all things QSBS.