While exit difficulties remain their biggest concern, U.S. venture
capitalists see an unstable regulatory environment and unfavorable tax
policies as weighing on their shrinking industry, according to a
survey by accounting firm Deloitte & Touche LLP and the
National Venture Capital Association.
This is the first time tax and regulatory issues have surfaced as major worries for U.S. VCs in the global survey, which Deloitte and the NVCA have conducted for six years, said NVCA President Mark Heesen. Higher taxes on profits known as carried interest and registration of venture firms with the Securities and Exchange Commission have been on Congress’s agenda this year, although the venture industry so far has avoided them. Heesen also said VCs’ heightened interest in government-regulated sectors such as clean technology and health care could also be causing investors to pay closer attention to government policy.
Nonetheless, he said, “I really do see this as a wakeup call to policy makers in the United States and around the world.”
To read the full, original article click on this link: Exits Remain VCs’ Top Concern, But Government Policies Up There - Venture Capital Dispatch - WSJ
Author: Russell Garland
