QSBS Spotlight: Hippocratic AI Raises More Than $250M in Less Than 5 Years
A weekly series where we cover recent acquisitions, capital raises, and pending IPOs that may be Qualified Small Business Stock (QSBS) tax exemption eligible, granting investors and planners insight into real world planning opportunities using QSBS rollovers.
Hippocratic AI, the generative AI healthcare firm focused on patient-facing non-diagnostic clinical tasks, has secured a $141 million Series B, just nine months after its Series A. The latest round, led by Kleiner Perkins, brings the company’s valuation to $1.64 billion.
While this capital injection fuels growth, it also presents a valuable QSBS tax-savings opportunity, particularly for early investors, founders, and employees who may have taken some cash off the table during this round through secondary sales.
Since Hippocratic AI was founded in 2023, shares issued at the time would not yet qualify for QSBS's five-year holding period exemption. However, investors who realize gains from selling stock can defer and potentially eliminate taxes entirely through a QSBS rollover (Section 1045 exchange), allowing them to reinvest into another QSBS-eligible company and restart the five-year clock on their exemption.
Not all QSBS rollover opportunities are the same. Some investments are riskier than others, but rollover investments exist that can serve to protect and expand the tax-free capital gains from these types of transactions. Especially for taxpayers in high-tax states, this rollover opportunity is one of the most powerful tax mitigation tools available.
(Bridge the 5-year holding period gap)
For more information on QSBS rollovers and how they can help to bridge the 5-year hold period gap, or multiply the $10M exclusion limit, read more below or contact our team Program Director at brady@QSBSrollover.com, or take our eligibility quiz, here.
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You could benefit from a QSBS rollover if:
You recently sold QSBS before the 5 year minimum hold period
You recently sold QSBS that you held for 5 years, but your gain exceeds $10M
You’re considering an exit in the next 1-4 years and want to think ahead about tax planning
Are an angel investor seeking flexible QSBS opportunities to help defer gains
The Vint Retail Partnership Program can be a solution for QSBS gain holders in need of a flexible, low-risk, and relatively liquid QSBS opportunity. Get in touch with our team today to learn how to partner with us and potentially save millions in gains tax from a stock sale.
Here are some of the questions we typically ask when having a first meeting with potential partners:
Did you recently sell or are you holding Qualified Small Business Stock?
When did you sell your stock?
Was this your first liquidity event?
Are you a founder, early employee, outside investor/angel, etc?
Are you certain that your stock met the Active Trade/Business and other requirements under Section 1202? (Outside of holding period requirements)
What is your intended rollover amount?
How long did you hold your initial stock?
(Read more about QSBS planning and see some example situations)
