You’re an Angel! Angel Investors and Venture Capital

One of the biggest challenges that businesses face, particularly in the start-up stage, is obtaining the requisite amount of funding to establish and sustain the business. In today's economy, a business has several avenues through which to obtain that funding, which include both public and private sources. Two of the most prevalent private sources of start-up capital are from angel investors and venture capitalists. Encouraging investment on the part of angel investors and venture capitalists, particularly those putting their own funds or combined funds at risk, requires additional incentives. Some of these incentives can be found in federal and state tax law provisions.

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• Venture Financing Overview
  Learn more about venture capital, which is an important source of money for start-up companies that do not have access to the capital markets. It covers what venture capital investors look for as well as the process of seeking and obtaining venture capital support at the various stages of a start-up's growth. 

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  • Business Entities. IRS and Treasury issue final regulations affecting corporations that file consolidated returns and permit consolidated groups that acquire new members that were members of another consolidated group to elect in a year subsequent to the year of acquisition to waive all or part of the pre-acquisition portion of the carryback period for certain losses attributable to the acquired members, where there is a retroactive statutory extension of the net operating loss carryback period. D. 9977, 88Fed. Reg. 44210 July 12, 2023 (Carryback of Consolidated Net Operating Losses).
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