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#incorporation #delaware #fundoperations

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

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Nov 22, 2023
Why is there a strong preference by US LPs, for VC firms to be incorporated specifically in Delaware?
1 answer
1
Mike Suprovici
Accepted Answer
Nov 22, 2023
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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