Trump’s Tax Law Sweetens Secondary Deals in Venture Capital

Tucked into the “big beautiful bill” signed by President Trump is a new incentive for shareholders of venture-backed startups to sell their shares on what is known as the secondary market. Investors don’t expect the change to trigger a stampede of sellers, but they say cashing out earlier is now a bit easier.

The new tax-and-spend law expands the Qualified Small Business Stock tax exclusion to allow investors in startups to sell more of their holdings early without paying capital-gains taxes. The new bill raises the per-issuer cap on eligible gains to $15 million, from $10 million, allowing investors to reap the benefits while holding shares for shorter periods.

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