Proposed Endowment Tax Hike Could Disrupt VC Funding

Proposed Endowment Tax Increase Could Impact VC Funding

A proposed tax increase on university endowments from 1.4% to 35% by the Trump administration has raised concerns among some venture capitalists, including Ann Miura-Ko of Floodgate Partners. This increase could significantly impact funding for private equity, including venture capital, as endowments are substantial limited partners in these investments.

This proposal echoes a similar bill introduced by then-Senator J.D. Vance, which was blocked by Democrats. The enactment of this tax increase remains uncertain, particularly given the connections between the administration and the VC community. However, the potential implications for the VC ecosystem are substantial.

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