Michael Jackson’s Post

Seems like it’s not just us locals who question the sanity of our current (soon to be x) government. One of the core challenges in economic policy is finding the right balance in using the tax system to encourage certain behaviors without inadvertently penalising productivity and innovation. Kahneman's insights in "Thinking, Fast and Slow" about the interplay between our instinctual reactions (System 1) and our more deliberative processes (System 2) are incredibly pertinent. As taxes can both motivate and demotivate, understanding the nuanced human responses to incentives and penalties—rooted in Kahneman's observation that people often feel the sting of losses more acutely than the pleasure of gains—becomes crucial. This insight helps explain why punitive taxes and pre-taxation on unrealised income can be especially discouraging for entrepreneurs and investors, even when meant to foster sustainable investments & sense of fairness. The current debate in Norway about capital taxes for owners & founders underscores the problem of short-term thinking in tax policy, where immediate budgetary needs & ideological wins are prioritised over long-term economic goals for transitioning from an oil-dependent economy. Kahneman's distinction between "Econs" and "Humans" highlights the challenge of designing policies that account for the complex, often irrational human behaviors rather than assuming rational economic actors. This underscores the urgency for a more nuanced approach to economic policy that is informed by a deeper understanding of human behavior. To create a fairer and more effective tax system, it's essential for policymakers to integrate insights from behavioral economics, considering both rational and less rational aspects of human decision-making. I encourage the government to seek input from outside their political sphere (not just the input rounds, but behavioural economists), to show that they seek to understand the situation from all sides. We already have an excit tax, question is not necessarily about if, but about how. Like most of the tax debate really are. Alexander Woxen Svein Willassen Shifter.no Rolf Assev thx Michael Jackson

Great that this topic gets more attention. Any entrepreneur should think about this before starting a (VC-backed) company in Germany. If you are successful, often times you need to go the U.S. for the higher valuations or an exit, but if you do... (see post below). On a side note: Only reliable (!) way out without spending 6 figures on tax accountants / -lawyers is to sell your shares in the company no matter the cost. Otherwise you are threatend with personal bankruptcy. Funny enough: You get taxed on your last valuation of the startup shares, but the goverment doesn't want them as a security because the valuation isn't real. 🤣

I see the rationale behind wanting successful businesses to contribute to Norway's economy, especially to support its high-quality public services. However, taxing unrealized gains seems counterproductive, potentially scaring off innovation and investment. A balance is crucial. Perhaps Norway could consider incentives for startups alongside fair taxation mechanisms, ensuring founders aren't penalized before their businesses truly succeed. Encouraging dialogue between the government and entrepreneurs might lead to more supportive policies that foster a robust startup ecosystem without hindering economic growth.

Norway’s new emigration tax of unrealized wealth, e.g. your share of the valuation of a startup you have invested in, is going to deeply hurt Norway’s ability to attract investments and build an entrepreneurial modern economy.

How to make sure a country will remain depending on the oil and gas industry - best practices from Norway.😬

It’s simply unbelievable to watch some European countries striving to create good environment for startups and entrepreneurs, but still put in place regulations that discourage the efforts… 😤 #startup #startups #entrepreneurs #europe #vcs

This is going to have dire long-term consequences for Norway. This disincentivizes current and future entrepreneurs to establish activities in Norway. There are many other countries that offer great incentives to establish companies and businesses for the purpose of attracting talent, wealth and business with a goal of boosting and growing their economy. Norway is doing the opposite and we will see more smart talented entrepreneurs leaving for countries that treat them better. This news comes as a red-flag for those considering locating here to establish businesses that could add value to society. We will see the true damage of such measure in the coming future.

Finland may be small in size, but its startup scene packs an outsized punch. I spoke with Tuomo Laine of Twice Commerce who explained what makes the Finnish ecosystem so powerful. He highlighted the 3 main points: 1. Finland has a strong startup ecosystem where experienced founders help new entrepreneurs succeed. The country's small size enables easy access to knowledge and networks. 2. Finnish founders are known for their grit and determination to push through challenges. This perseverance is key to building globally impactful companies. 3. Finnish founders tend to give conservative financial projections, believing in underpromising and overdelivering. This prudent approach earns trust when raising funds. #startups, #Finland, #entrepreneurship, #startuplife, #Nordicstartups, #startupnation, #growthmindset, #grit, #success, Joona Selin

🚀 Want to secure seed funding for your startup? Learn about the rise of solo VCs as a viable option in Europe, and explore why startups are turning to solo VCs for agility, expertise and personalised attention 👇 https://lnkd.in/eBSryeFP #StartupFunding #SoloVCs #Entrepreneurship

There are factors that enable solo VCs to develop deep personal relationships with founders and reap a disciplined, focused portfolio. 1. They are the sole general partner (GP) of their funds. 2. The solo capitalist is the only member of the investment team. the personal relationships they have cultivated and the efficiency with which they complete deals. While solo VCs may not have the abundant deal flow of the major funds. #vcfunding #solovc #startupfunding #startupcommunity