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Venture Capital FAQs
Nearly 1.4 million legal entities are incorporated in Delaware (including over two-thirds of Fortune 500 companies), and approximately 80 percent of U.S.-based initial public offerings choose the state as their corporate home. As a result, there is broad familiarity with Delaware law among many companies, investors, and attorneys.
A startup that incorporates in another state immediately differentiates itself from other companies just by incorporating in a state other than Delaware – which is not a particularly helpful way for a startup to stand out when seeking capital.