Sequoia Capital marks its investment in FTX down to $0

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Tech reports are many things, but they’re certainly not boring as the chaos surrounding Twitter, crypto and layoffs continues. We’re just trying to hang on for dear life to try to make some sense out of it all. We think we’ve done a pretty decent job, and here we have a selection of what happened in the last 24 hours of tech. ā€” Christine and Hadje.

TechCrunch’s Top 3

  • Another domino falls: It must have already been a fiasco, but Binance decides not to buy FTX led Sequoia Capital to claim its minority stake in FTX as nothing more than unrealized profits, Horses reports. Investor letter and all.
  • Meanwhile, over to our other favorite hot mess: Elon Musk was right when he tweeted that the company would do “a lot of stupid things.” Darrell reports one of their recent chargebacks (because they seem to pile up before we even have time to catch our breath) where all these accounts were promised the little blue tick in exchange for $8, but as you all know when we make fake accounts , that means we can’t have nice things.
  • More changes on Twitter: Another group of Twitter top dogs decided to leave the nest. This time it’s Chief Information Security Officer Leah Kisner, followed by Chief Compliance Officer Marianne Fogerty and Chief Privacy Officer Damien Kieran. The latter two reportedly resigned today, according to Zak and Ingridwho banded together to pursue the details.

Startups and VCs

Denver-based venture capital firm SpringTime Ventures is moving away from its original focus in its home state of Colorado, despite being the only domestic fund in two of the state’s 10 unicorns, Becca reports. It’s also now able to expand its team thanks to raising three times as much money for Fund II, giving SpringTime enough cash to allow its partners to finally pay themselves a “real salary.”

New crypto startups advanced during the Alliance DAO demo day on Wednesday amid the FTX implosion. The newest cohort, known as All9, for Alliance DAO, a web3 accelerator and builder community, presented their ideas on Wednesday during a demo daycovered exclusively by Jacqueline.

And here are some other things that caught our little eyes today:

Use IRS Code Section 1202 to sell your multimillion-dollar startup tax-free

A piggy bank with sunglasses on the beach on the seashore

Image Credits: Brian Jackson (opens in a new window) / Getty Images

Founding teams typically choose a corporate structure like an LLC or S-Corp, but those hoping to go for $10 million or more should consider starting as a Qualified Small Business (QSB) C-Corporation, advises tax attorney Vincent Aiello .

Under IRS Code Section 1202, founders who have held QSB stock for five or more years will be exempt from paying capital gains tax upon sale.

“This represents a significant tax-saving advantage for entrepreneurs and small business investors,” says Aiello. “However, the effect of the exclusion ultimately depends on when the shares were acquired, the trade or business being run and various other factors.”

Three more from the TC+ team:

TechCrunch+ is our membership program that helps founders and startup teams get ahead of the curve. You can register here. Use code ā€œDCā€ for 15% off annual subscription!

Big Tech Inc.

Elon Musk wants Twitter staff in the office and wants them to fight spam. These were some of the messages the new owner had for his social media staff, Ivan write. Oh, he also told them to be prepared for “tough times ahead,” which is always something you want to hear from your leader regarding the future of your job.

After the Binance deal fell through, the founder of FTX Sam Bankman-Fried has some new tricks: closing the trade in Alameda Research and completing its fundraising skills, Manish reports.

No more FTX or Twitter below, we promise:

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