Some of the advantages of early stage investing include the increased transparency that comes with getting in when the company is still small. You will likely have the chance to meet the founder and the team, and really get to know who and what you are investing in. Another advantage includes the preferential tax treatment that comes with investments made in “qualified small businesses”. These are companies with less than $50 million in assets both before and after the investment. Capital gains in “qualified small businesses” that are held for 5 years or longer are 100% tax exempt, up to the greater of $10 million or 10x your investment. TVC CCX hat alone can save you up to $2 million in potential taxes assuming your investment is successful.