In a recent interview, venture-capital pioneer Arthur Rock discussed his early days in the venture-capital industry and why he’s now investing in corporate governance and education issues. He also waded into a contentious debate about venture-capital carried interest.

Carried interest is the profits that venture capitalists make on their start-up investments. For years, such profits have been taxed at the rate of capital gains taxes, which are currently at 15%. But there’s been a move afoot by legislators to tax carried interest at the rate of ordinary income taxes, which can go as high as nearly 40%.

To read the full, original article click on this link: Arthur Rock on Venture-Capital Carried Interest - Digits - WSJ

Author: Pui-Wing Tam