VCs await regulatory clarity on Opportunity Zones, the latest tactic to draw capital

It’s an oft-cited statistic that 75 percent of venture capital in the U.S. goes to just three states: New York, California, and Massachusetts — and it has for years. If it’s going to take years to close that gap, why not offer an incentive for investors to put their money in other places?

That’s the thesis behind Opportunity Zones, a tax incentive program laid out by Congress in last year’s Tax Cuts and Jobs Act. The incentive goes to those who invest in assets that will in theory encourage job creation and new business development, like tech startups in so-called Opportunity Zones. Opportunity Zones are specific U.S. neighborhoods that have been designated as economically distressed, with high unemployment rates and large shares of low-income residents.

Anna Hensel @ahhensel

https://venturebeat.com/2018/09/22/vcs-await-regulatory-clarity-on-opportunity-zones-the-latest-tactic-to-draw-capital-to-the-heartland/