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Why is there a strong preference by US LPs, for VC firms to be incorporated specifically in Delaware?

Why is there a strong preference by US LPs, for VC firms to be incorporated specifically in Delaware?
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Delaware is the domicile of choice for most new and emerging managers world wide for the following reasons:
  • Cost-effectiveness
  • Regulatory Clarity and Stability
  • Efficient Formation and Management
  • Global Investor Familiarity and Confidence
  • Prolific Startup Ecosystem
  • Tax Appeal

For more details, please review this article: https://govclab.com/2023/06/10/delaware-is-the-vc-domicile-of-choice/

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