Venture capitalist firms urge the Securities and Exchange Commission (SEC) to give relief to start-up companies from post-Enron corporate-governance laws. VC firms believe the SEC is prolonging the worst initial public offering slump in decades by maintaining these laws. The VC firms want the SEC to review regulations, such as pre-IPO financial reporting requirements, rules that keep investment banking separate from stock research within brokerages, and the Sarbanes-Oxley Act.

The industry is also asking for tax relief for IPO investors. The VC firms believe that venture-backed stock offerings have helped create 12 million U.S. jobs. 10 percent capital gains tax rate for IPO investors who hold shares for at least two years was a proposed idea from a VC firm. This is compared with the usual 15 percent tax on capital gains.They claim that without IPOs, there is no job growth which will make the recession deeper.

VC firms are fighting to keep a tax break that President Barack Obama has proposed eliminating. The share of the profits that venture capitalists make investing clients’ money is currently taxed at the same rate as capital gains, rather than the higher level for ordinary income.

Written by Shosh Pincus

For further information regarding this topic, visit:

About Us

PPM is the leading U.S. entrepreneurial firms that specialize in writing private placement memorandums (PPM) and linking investors with entrepreneurs.

Since 1999, the founders of PPM have provided professional business writing services, such as a PPM or business plan, to more than 2,000 businesses worldwide. Our company is considered to be the most cost effective, efficient consultants for private placement memorandum development in the United States. We are Wall Street’s, and by extension, New York’s private placement leaders.’s main service is the creation of private placement memorandum regulation d (Reg. d) documents. However, we offer much more. In case the entrepreneur needs additional services, such as a business plan, website, or additional legal work, PPM can create one pricing package for all required documentation or service. Because we simultaneously work with many companies both in and out of the U.S., the ability to adapt to the individual needs – as well as to regional and global demands – helps our clients save needed capital and time.