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QSBS Qualification for a Venture Studio?

1. QSBS Qualification for a Venture Studio?

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Steven Rodgers
Posted 21 days ago

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I'm starting up two Delaware C-Corps. One will be a Venture Studio (Planet 9 Ventures Inc.) helping founders launch new businesses leveraging AI and automation and the 2nd company will be an Operational/Industrial Technology Cyber Security solutions company (Nexus 9 Inc.). We're interested in complying with IRC Section 1202 (QSBS) for both companies, but I'm wondering if that's a possibility for the Venture Studio.

Has anyone launched a Venture Studio that starts, incubates, and invests in companies that also qualified for the QSBS tax break? The Venture Studio has IP and AI technology and processes that will be leveraged by the associated companies. At this point, I'm trying to figure out what the cap table of Nexus 9 needs to look like. Does it make sense have the Venture Studio on the cap table, or just the key founders as individuals on the cap table for Nexus 9? Either way, the initial owners are the same.

Thanks in advance for any and all help!

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Steven Rodgers
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