Q&A with Jeff Pomeranz of Right Side Capital Management
, Managing Director
Principal Series:
Right Side Capital, based in San Francisco, is a pioneer in pre-VC stage tech investing and has invested in 1,200+ tech startups since 2012. They manage a series of venture funds targeting a 3x – 5x+ net return goal, with exceptionally low taxes.
Join us to meet Jeff Pomeranz, Managing Director of Right Side Capital Management, a pioneer in pre-VC stage technology investing. Jeff and his partners have worked together for 11 years and have invested in over 1,200 startups across their 6 venture funds. Right Side Capital has a proven track record of producing outsized returns with exceptionally low taxes.
Sept 30, 2021 at 2:15pm – 3:15pmEST
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What are the tax benefits to investors in RSCM Funds?
The RSCM strategy is optimized for tax efficiency. Our funds take advantage of two very impactful, but often overlooked, tax incentives available to very early investors. The first is IRS Rule 1202, which allows the potential for gains to be tax free federally (and in 45 of 50 states) for investors in Qualified Small Business Stock (QSBS). The second is Rule 1244, which provides more favorable tax treatment on losses for extremely early investors in QSBS stock. We expect the vast majority of our funds’ gains to qualify for the QSBS exemption.
Why is now a good time to invest in very early tech startups?
The best macroeconomic cycle for our funds is getting to invest during, and just after, an economic downturn like we have today. Recession and post-recession years have historically always been great years for startup. Also, volatility is good for young startups.
Disruption shakes up the competition, creates opportunities and small companies can adapt and pivot more quickly than larger corporations.
Why invest in tech startups at such an early stage?
The first reason is returns. Returns in the tech sector are always higher the earlier you go. The second reason is lack of competition. We invest at an earlier stage than other professional investors, even earlier than seed and pre-seed VC firms. As a result, we don’t have to compete with other professional investors for deals. We have an almost unlimited number of great deals to choose from because check sizes at this stage are too small for the traditional VC industry to address.
Jeff Pomeranz of Right Side Capital Management
Jeff Pomeranz is a Managing Director of Right Side Capital Management, LLC and has 28 years of experience in the financial services industry. Prior to the Right Side Capital, Jeff served for 7 years as Head of Alternative Investments for Legend Merchant Group, Inc., a financial services firm offering investment banking, brokerage & asset management services. Mr. Pomeranz previously spent 8 years as a founder and President of Hotovec, Pomeranz & Co. LLC, a boutique technology research, investment bank & wealth management firm. The firm specialized in providing highly differentiated research on technology companies. Early in his career, Mr. Pomeranz was a Private Client Financial Consultant for Smith Barney providing wealth management services.
Mr. Pomeranz received his Bachelor’s degree from the University of Colorado. Contact Jeff: jeff@rightsidecapital.com