QSBS 2.0 offers a verification service for venture capital and angel investors to confirm the Qualified Small Business Stock (QSBS) status of their investments, enabling them to maximize tax exclusions under Section 1202. The platform calculates potential tax savings—up to $3.57 million per $15 million of exit value—and provides guidance on optimizing portfolio QSBS eligibility.
Funding
Funding not disclosed
Founders
Product
Problem
VC and angel investors often lack a reliable, centralized way to confirm whether their portfolio companies qualify as Qualified Small Business Stock (QSBS) under Section 1202, risking missed tax exclusions and suboptimal exit planning.
Solution
QSBS 2.0 provides an online platform that assesses the QSBS eligibility of portfolio companies and quantifies the potential tax exclusion benefits. The service calculates estimated savings—up to $3.57 million for every $15 million of exit value—based on the new rules effective July 4 2025. It also guides investors through roll‑over provisions and other eligibility criteria, helping them structure exits to maximize after‑tax returns. Users receive a detailed report outlining qualifying status, projected tax impact, and recommended actions. The platform is accessible via a demo request, allowing investors to evaluate the tool before adoption.
Target Audience
Primary customers are venture capital firms and individual angel investors who need to validate QSBS status across their investment portfolios.
Features
- Automated eligibility analysis that checks corporate structure, issuance date, and other Section 1202 requirements
- Tax benefit calculator projecting exclusion amounts and potential after‑tax savings for various exit scenarios
- Guidance on Section 1045 roll‑over rules and timing to preserve QSBS benefits
- downloadable compliance reports summarizing findings and recommended next steps
- Resource hub with FAQs, legal interpretations, and updates on QSBS regulatory changes