In the United States, when an early-stage startup sells shares to a venture capitalist, generally no taxes are due. This assumes that the VC purchases shares directly from the company, similar to how a stock market investor may purchase shares during a company’s Initial Public Offering.There are times when a VC may purchase shares that could be considered taxable events, such as when an investor purchases shares from a founder, providing the founder liquidity and triggering a capital gain. In these instances, and when raising VC funding in general, we recommend working with an experienced CPA.