The skeptic from the first post in this series was arguably given useful supporting evidence in August when several prestigious professors published an NBER working paper called Investor Tax Credits And Entrepreneurship: Evidence from US States. (Downloadable from...
In August 2020, the SC Department of Revenue updated how individuals applied for the South Carolina angel investor tax credit. All the rules about qualified businesses, qualified investors, and the application deadlines are the same. Even the form TC-56A remains the...
In our last post, we mentioned a survey on angel investors in South Carolina. This was a survey we conducted through our website during 2018-2020.It wasn’t an exhaustive scientific study with robust statistically-validated outcomes! It was, though, we think, useful...
As you know, at VentureSouth we are fans of the South Carolina angel investor tax credit. Over the course of 2020, we have learned more about the credit, its renewal, its use, and its impact, and so we wanted to share some of these learnings through a few additional...
The Three Ds of Angel InvestingAngel investing is about three Ds: Ducks DunbarsAnd Deca-corns TWIST!Angel investing has nothing to do with wildfowl, Sullivan Foundation awardees, or mythical creatures. Angel investing is actually about three...
What do VC funds actually charge in management fees, and who cares? The hypothesis: The VentureSouth view: Venture capital funds and other similar funds that invest in early-stage companies (like our VentureSouth sidecar funds) charge a management fee that is...
To wrap up this series in a few bullet points.VentureSouth makes mistakes. We thought our step-down approach when defining the management fee for our sidecar funds was universal market practice; but it is not.It turns out that some VCs are greedy (who would have...
How do I use this information?New people invest in venture capital and angel funds all the time, and it’s hard to know what’s standard vs. reasonable vs. unusual vs. egregious if you are a new investor. Heck, we began this article in the first place because what we...
So then how have you dealt with the issues with the step-down approach you covered?Another fair question. To take each of them in turn:1. Protracting the deployment period. The VentureSouth sidecar funds are all set up to “trigger”...
What would VentureSouth do?A fair follow-up question on these posts on venture capital fund management fees is: so what does VentureSouth do?You hopefully will not be surprised to learn that we use the step-down approach on our sidecar funds: a percentage of committed...