How I Invest with David Weisburd E83: Tax Benefits of Investing in Venture Capital w/ Michael Schulman
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Aug 6, 2024 
Michael Schulman, Chief Investment Officer at Running Point Capital, shares his insights on the venture capital landscape. He discusses the importance of careful manager selection and the risks and benefits of investing with spinout managers. Schulman emphasizes the need for strong relationships with General Partners and delves into tax strategies before liquidity events. He also highlights the critical balance of quantitative and qualitative skills necessary for effective wealth management and successful investment communication.
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Venture Capital's Excitement and Patience
- Venture capital investing mixes excitement and patience due to its evolving timelines and exposure to innovation.
- Individuals often struggle with patience compared to institutions accustomed to long-term horizons.
Value of QSBS Tax Benefits
- Qualified Small Business Stock (QSBS) offers significant tax savings for early-stage VC investments.
- Anticipated future tax increases make these benefits even more valuable over time.
Criteria for Manager Selection
- Choose managers who are smart, have distinct niche expertise, and possess established systems.
- Avoid those still figuring out fund operations when entrusted with client money.