Some VCs are wanting on the Trump administration’s proposed giant tax enhance on faculty endowments with alarm, warns Ann Miura-Ko, co-founder at Floodgate Companions.
“There is a proposal correct now to take the endowment tax from 1.4 % to 35 %, and the general public would say, properly endowments are large rich, why can we care? Properly, they’re giant restricted companions in private equity, whether or not or not it’s enterprise capital or not. And so it will actually really impression funding,” she acknowledged at an Axios Dealmakers event on Wednesday.
Vice chairman elect J.D. Vance proposed an identical bill a 12 months up to now as a senator nonetheless it was blocked by Democrats. Even now, it’s not clear if this tax enhance is likely to be enacted, notably given how many of the new administration’s appointees and donors are VCs.