▲ | TuringNYC 6 days ago | |
You are right that it creates residual value which might be purchased for value (probably at a discount.) However, it doesn't help the startup actually pay the bills while it operates. Historically, the R&D payroll just wiped out same year revenue and you essentially did cash accounting. After Section 174, you had to finance the R&D by borrowing or just hiring less. |