Contact:

Ben Veghte
NVCA
202.864.5923
bveghte@nvca.org


FOR IMMEDIATE RELEASE:

WASHINGTON, DC – The National Venture Capital Association (NVCA) today issued the following statement after Republican presidential candidate Donald Trump gave a speech in Detroit calling for the elimination of the current tax treatment of carried interest.

“Donald Trump’s call for the elimination of carried interest demonstrates an unfortunate misunderstanding of the critical role it has played in the growth of the U.S. entrepreneurial ecosystem.  Despite the populist uproar, carried interest has been an important feature of the tax code that properly aligns the long-term interests of investors and entrepreneurs to build great companies together, and is only realized after our country receives the benefit of greater economic activity,” said Bobby Franklin, President and CEO of NVCA.  “Far from being a so-called ‘loophole,’ the carried interest venture investors receive is similar to stock awards received by the founders of a startup in that both the venture investors and founders commit the time, energy and creativity against huge risks to build new startups into successful companies.  Rather than continue to toss around the proverbial political football to raise taxes on new company creation, let’s instead discuss ways we can encourage entrepreneurship and innovation by rewriting rules in the code which hurt or ignore startups. ”


About National Venture Capital Association

Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, the NVCA serves as the definitive resource for venture capital data and unites its member firms through a full range of professional services. For more information about the NVCA, please visit www.nvca.org.