%0 Journal Article %A Joseph W. Bartlett %T From the Embryo to the IPO, Courtesy of the Conveyor Belt (Plus a Tax-Efficient Alternative to the Carried Interest) %D 2011 %R 10.3905/jpe.2011.15.1.048 %J The Journal of Private Equity %P 48-55 %V 15 %N 1 %X The article outlines an assembly line designed to link promising intellectual property freed up from academic vaults, spin outs manned by ambitious entrepreneurs, early stage angel financing from increasingly professionalized angel networks, co-developed angel network/venture fund best practices enabling smooth transitions to growth or mezzanine capital from the venture capitalists, and, finally, to a win-win-win exit for all hands involved in the “embryo to the IPO (or trade sale)” journey. The process opens up an opportunity for venture capitalists to walk away from the controversial carried interest and, in the bargain, increase the after-tax returns to both them and their investors.TOPICS: Private equity, portfolio construction, legal/regulatory/public policy, performance measurement %U https://jpe.pm-research.com/content/iijpriveq/15/1/48.full.pdf