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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Having street smarts with no inspirational ability to build teams can yield a great small business but will be difficult to scale into a large VC-backed business. VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early. Few people have it.

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What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

An article in Forbes explains that a venture capital firm makes its money through management fees (a percentage of the amount of capital that they have under management) and carried interest (a percentage of the profits of the business). Small business loans and crowdfunding will also finance a start-up business.

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Obama proposes no capital gains tax on qualified small business stock

Startup Company Lawyer

The budget proposal is wide ranging, and includes, for example, proposed changes with respect to the taxation of “carried interests&# in partnerships, as well as sweeping reform of the international tax area. If enacted, this would significantly enhance the tax incentives currently available for qualified small business stock.

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The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

The Small Business Investment Company (SBIC) Act in 1958 guaranteed that for every dollar a bank or financial institution invested in a new company, the U.S. But the biggest innovation was the “carried interest” (called the “carry”.) into believing it was behind the Soviet Union in innovation.