Fundraising
Delaware flip
A Delaware flip is the restructuring of a company, often a non-US entity or a US LLC, into a Delaware C-Corporation so it can accept standard US venture investment. It is routine in venture financing but can have tax consequences in both the US and the founder's home country.
In plain terms: Converting your company into the US corporation investors expect.
Why it matters
Investors see it constantly, so it is not a red flag. What founders underestimate is the home-country tax treatment, which can differ entirely from the US treatment. Model both before executing rather than after.
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