VCs to Trump: You know what would really make America great? Tax breaks for VCs

Silicon Valley sugar daddies want more cash to throw at startups

A group of venture capitalists are asking US President-elect Donald Trump to implement a series of tax cuts and policies they say will bring more funding for startups.

In a letter (PDF) to the real-estate mogul turned-politician, the National Venture Capital Association (NVCA) asks for tax breaks for ventural capital companies, loosened regulatory controls on medical companies, and immigration policies that would make it easier for tech companies to import workers.

"Your campaign for president reflects the belief among many Americans that too many have been left behind by the modern economy," the letter reads.

"It is apparent that economic success has passed by large pockets of the country and that more must be done to create economic opportunity for all Americans."

To remedy this issue, the venture capitalists think Trump should overhaul tax rules, including removing loss limits they say restrict small companies from investing in research and development.

The VCs also want the Trump Administration to change immigration laws for skilled workers, making it easier for start-ups to hire workers from other countries and encourage entrepreneurs abroad to set up shop in the US.

"Debate during the election often focused on illegal immigration, but unfortunately not how legal immigration can create jobs for American citizens, including in underemployed areas," they argue.

"This can be accomplished by attracting the world’s best entrepreneurs to our country through creation of a Startup Visa and allowing more high-skill immigrants to help build startups."

Trump already has ties to the VC community thanks to his friendship with billionaire tech investor Peter Thiel. The Facebook-backer was a loyal Trump supporter during the election and is now believed to have the President-elect's ear on tech policy.

The NVCA hopes it can similarly influence Trump to pass policies they think will allow the US to better compete on the world stage.

"Innovation and entrepreneurship is now a global competition. Of course, competition among nations to build innovative startups is not a bad thing," they write.

"But we must recognize that this competition has already started and we are losing ground." ®