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The Great QSBS Clock Debate

SAFE Investments and the Five-Year Rule

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Ignite Insights
Jul 18, 2025
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Imagine an investor eagerly tracking their startup portfolio’s growth, counting down to a tax-free windfall. The QSBS clock is ticking — but did it actually start when they thought it did?

Qualified Small Business Stock (QSBS) can be a golden ticket for investors and limited partners (LPs) in venture funds. Under Section 1202 of the U.S. tax code, those …

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