The Importance of Repurchases in QSBS

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

From a QSBS standpoint I believe that it starts when the shares are actually issued but there may be some tacking available so definitely check with tax folks on that. A lot more up and tighter and less errors hopefully or any cantankerousness that can occur.QSBS qualified small business it becomes an issue right you have to hold these shares from five years from the pricing of the share is that going to make sure when you require the sharesYeah so it's a convertible note until it converts you actually don't have the shares or you do or debatable.

Today’s show:

Wilson Sonsini Partner Becki DeGraw joins Jason to kick off another series of Startup Legal Basics! In this episode, they break down secondary market transactions, including the evolution of secondaries (00:50), trends in the industry (3:16), critical aspects of Qualified Small Business (QSBS) stock(20:06), and much more!

Time stamps:

(00:00) Wilson Sonsini Partner Becki DeGraw joins Jason (00:50) The increased use of secondary markets (3:16) How companies staying private longer influenced the rise in secondaries (4:25) Determining how much founders should be allowed to sell (6:21) Spending more than a company is worth (9:26) The Pari-Passu concept explained and how it applies to early investors, founders, and employees (10:38) Who gets to sell pre-IPO (12:44) Off the cap table transactions and hypothetical scenarios (18:26) Tender offers and the NASDAQ secondary market (20:06) The critical aspects of qualified small business (QSBS) stock

Check Out Wilson Sonsini: https://www.wsgr.com/en/ *

Read LAUNCH Fund 4 Deal Memo: https://www.launch.co/four

Apply for Funding: https://www.launch.co/apply

Buy ANGEL: https://www.angelthebook.com

Great recent interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland, PrayingForExits, Jenny Lefcourt

Check out Jason’s suite of newsletters: https://substack.com/@calacanis

Follow Jason:

Twitter: https://twitter.com/jason

Instagram: https://www.instagram.com/jason

LinkedIn: https://www.linkedin.com/in/jasoncalacanis

Follow TWiST:

Substack: https://twistartups.substack.com