Venture Capital & Tech

The United States remains the undisputed global hub for venture capital, absorbing the majority of global funding in AI, deep tech, and enterprise software. Exposure to US VC is essential for a diversified, growth-oriented portfolio.

Fund-of-Funds vs. Direct Co-Investment

Accessing top-tier US VC funds (where the majority of returns are concentrated) is notoriously difficult. Kuwait USA Capital facilitates access through:

• Primary Commitments: Securing allocations in established Silicon Valley, Austin, and NYC funds.
• Direct Co-Investments: Selectively participating in later-stage (Series B/C) rounds alongside lead sponsors, reducing blended fees (no carry on co-invest).

Structuring VC Investments

Unlike Real Estate (subject to FIRPTA), exits from US venture capital (selling C-Corp stock) are generally not subject to US capital gains tax for foreign investors, provided the investment does not trigger ECI or FIRPTA rules. However, proper blocker structures are still required if the VC fund invests in pass-through entities (LLCs) to avoid phantom income.