Venture Capital

Start-Ups Cheer Capital Gains U-Turn

Schäuble AFP Getty Images
Schäuble for Start-Ups.
  • Why it matters

    Why it matters

    The German government’s decision not to impose capital gains tax on the sale of small share stakes will help the country’s venture capital market and start-up scene which had been unsettled by the plan.

  • Facts

    Facts

    • The German government has abandoned a plan to tax capital gains on small stake sales.
    • Venture capital firms and start-up companies had warned that the measure would have hurt investment in new businesses.
    • Only 0.02 percent of gross domestic product is invested in venture capital in Germany. The U.S. percentage is 10 times higher. In Israel, it’s 20 times higher.
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    Audio

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