As of January 2024, Silicon Valley has over 40,000 startups. The San Francisco Bay Area, also known as Silicon Valley, has the largest concentration of high-tech companies in the United States.
Delaware has about 60% of the incorporations for companies in the USA and the fees associated with this provide about 12% of their tax base. If most of the Venture backed firms and the companies planning to be venture backed leave Delaware this could be in the 25-50% range.
This is not political. It is business. Delaware was chosen as a jurisdiction that business could trust. They were previously determined to be predictable and non-interventionist.
There is clear evidence that this is happening and happening quickly based upon online conversations.
My firm invests in 100+ new tech startups a year & like everyone we standardized on Delaware C corps because our lawyers told us it was the most just & trustworthy jurisdiction
Given the corruption in Delaware we will be changing this immediately.#standwithelon https://t.co/0f4yqjOv4P
— @jason (@Jason) February 1, 2024
LMK what you conclude. I think Nevada is the only non-Delaware state we have seen used. Sane rule of law, shareholder governance, and disdain for ambulance chasing law firms would all be a plus. Curious how IPO bankers look at it.
— Steve Jurvetson (@FutureJurvetson) February 1, 2024
There are three alternatives to Delaware.
1) Red states like Texas & Florida
2) Foreign states like Singapore & UAE
3) Blockchains like Ethereum & SolanaAll three should develop tools for corporate refugees exiting Delaware. Port over charter, bylaws, cap table — everything. https://t.co/EAXjdq5Lbh
— Balaji (@balajis) January 31, 2024
Good news, Texas allows CONVERSION.
What is conversion?
Domestication is the process a business undergoes when it changes its state of formation to another state. For example, if you formed your LLC in Wyoming but are now moving to, and operating your business out of Texas,…
— Ale𝕏andra Merz (@TeslaBoomerMama) January 31, 2024
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.
Why would any state allow another to be a relative tax haven? The favorable business climate to incorporate in Delaware seems like an imbalance or a gradient that should have inspired competition among other states.
Because it’s illegal to interrupt interstate commerce, people (and corporations are people under the law) have freedom to travel.
They have the right to move to any state the wish.
If state chooses to be uncompetitive, wasteful & corrupt, that’s their problem.
Political appointees and unelected bureaucrats…
Of both parties…
I don’t care what you believe: left, right, center, leftist, libertarian, statist…
Make sure you keep track of who your elected officials are appointing to seats of power, especially if their is no legal recourse for holding them accountable…