The Capital Fund
We have all had questions on The Capital Fund before. Below are the top questions posed by visitors just like you to our. We hope our answers located below will help you solve your funding problems today. Feel free to ask another question, or even comment on what has been written.
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Ross Said:
How can I obtain several sample prospectus for a venture capital fund?We Answered:
There is only a prospectus if the venture capital fund is registered for sale to the general public (most are not), and then it would be available at www.sec.gov; you will need to know the correct name of the fund. You might write to a sample of vc funds and ask them for their offering memorandum.Ramona Said:
What is the differnce between a venture capital fund and firm?We Answered:
Well, the fund would be the amount of money they have to invest overall. The firm would be the business - mainly the people who are the venture capitalists and decide who to invest in.Arlene Said:
Does CS bank hold venture capital fund?We Answered:
They have each of these, many of them.Sheila Said:
Why did I have to pay mutual fund capital gains tax?We Answered:
When you own a mutual fund, you pay tax each year on your share of the total items they sold. YOU might not have sold anything, but THEY did.It does not imply that you sold any shares, or even that your value went up for the year.
You'll also pay tax on your share of the dividends they received.
Keep track of what you paid tax on - you'll add that to your basis when you sell the shares.
Melissa Said:
What kind of regulations and compliance does a domestic Venture Capital fund face ?We Answered:
You are running a domestic VC fund and you are asking compliance questions on Y!A?If yes, I'd get a compliance officer and corporate & securities structure expert in this department quick.
This is a highly complex response you are asking. I'll give you the supper skinny to start.
As a former hedge fund manager and who helped build a number of hedge funds, the structure is very similar to a VC fund. - Private Placement.
I definitely would NOT ever have a domestic US fund that is primarily funded by foreign investors. You should have an offshore fund for this group; and a separate domestic fund for only US investors.
Foreign investors are not taxed in the U.S. (they are taxed in their country). The way you have this fund structured by your question, the fund itself will be subject to U.S. tax because it is U.S. chartered. Thus, the foreign investors will be double taxed (US and in their home country).
Wherever the fund is charted, that is where the applicable law takes place. The state you are in can also have influence.
If the fund is over $25 Mil (USD), it would be SEC registered fund; less than $25 mil, state registered.