tag:blogger.com,1999:blog-36634196.post250525176629362493..comments2023-10-09T11:33:37.853-05:00Comments on The IN VIVO Blog: Higher Tax, Fewer Deals?Chris Morrisonhttp://www.blogger.com/profile/04075266444951558159noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-36634196.post-76197349895119473142007-07-09T14:13:00.000-05:002007-07-09T14:13:00.000-05:00That taxing the carry should have an impact on whi...That taxing the carry should have an impact on which deals are done is bogus - or political spin. Shedding a tear and fear-mongering for new start-ups.<BR/><BR/>VCs are in the business of making money for their LPs (which is what they get paid for and taxed for), making happy companies is secondary, creating jobs is tertiary. No LP will pay a bonus for more jobs created or less, however, he will be concerned with performance, which is why marginal deals don't get done by good VCs and and shouldn't get done at all. Conversely, there is an abundance of deals that should get done and don't get done. So the carry debate is really so far removed from the investment decision (typically 5-10 years, which is the time from investment to exit...), that it is disingenious to create a link.<BR/><BR/>Funny enough, if life sciences would have PE investors, there would be a link, because (a) the PE investors would have more money (personally as well) that they could deploy but now would not because it has been taxed away, and (b) the life cycle for PE investments is much shorter. But then again, PE does not do life sciences because of (b).Anonymousnoreply@blogger.com