Increasing capital gains tax could lead to fund managers shying away from risky, high-return opportunities, according to Practical VC general partner, Aman Verjee.

CGT hike may deter ‘risky, high-return opportunities’

Practical Venture Capital (PVC) is a Silicon Valley VC firm focused on venture capital secondary. We buy LP and GP interests in early-stage venture funds, and direct secondary in breakout portfolio companies. Our investors get discounted access to top-performing funds with established winners and unicorns, and we cut the typical 10-15 year VC holding period in half.<br><br>Our “Skip the J-Curve” strategy buys venture portfolios and companies when they are 5-10 years old, after winners have emerged and losers are marked down or written off. The first 5 years of most VC funds are usually high-risk with many failures. However, in later years portfolio value is more stable and concentrated in fast-growing companies, with exits and IPOs likely in 3-5 years.

Aman Verjee's Media Coverage