Learn how to launch a Start Fund in a day with no setup fees.
Join the event on July 16th.
Previous Post
Next Post
2

Asked by

Community Member

on

in

Fund Operations

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?
1 See in Base
1

Answered by

Community Member

on

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/

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?