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?
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/