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- Entrepreneurship from the inside out
Entrepreneurship from the inside out
(And a $2000 tax credit for micro venture investing)
Delivered June 27, 2025 @ 5:00pm ET
Weather in Bloomington, IN - Sunny, 320 C / 900 F
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My name is Gerry Hays, Founder & CEO of Doriot® (pronounced “Doe-ree-oh”), a movement to break open the gates of venture and expand innovation and wealth beyond an elite few. Democratize Venture is my platform to explore the venture markets and share the insights, strategies, and frameworks I bring into the classroom. It’s where education meets execution—for anyone ready to play the startup game.
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FantasyStartup® - #1 global startup investing simulation with more than 14,000 downloads worldwide.
QAI - Qualified Accredited Investor™ - An exam and certification program for anyone serious about launching a venture-backed company or investing in high-growth startups.
On the Cato Stage
As mentioned last week, I joined a panel on capital formation this past Tuesday with the SEC Advocate for Small Business and the Small Business Entrepreneurship Council.
It was an honor—but I didn’t pull any punches. I’m fairly certain my remarks aren’t what Washington, D.C. or Silicon Valley usually hear.
Here’s the recording—my part begins around the 16-minute mark
Democratize Venture Corner: $2000 Tax Credit for micro-venture investors
And, at Cato, during the lightning round, each panelist was asked to propose one policy change that could meaningfully improve startup access to capital.
My answer was clear and timely—thanks in part to my involvement with the Crowdfunding Professionals Association (CfPA) and their Congressional lobbying efforts last fall. One of the CfPA’s standout proposals: offer a tax credit of up to $1,000 for individuals investing in Regulation Crowdfunding (RegCF) offerings.
On stage, I took it a step further and proposed doubling that amount—to $2,000.
Here’s how it would work:
Anyone investing in RegCF offerings would receive an annual summary from the Broker/Dealer or regulated portal they used, confirming their investment total. That amount—up to $2,000—would be eligible for a nonrefundable federal tax credit.
What’s a Nonrefundable Tax Credit?
A tax credit directly reduces the amount of tax you owe—dollar for dollar. However, a nonrefundable credit can only reduce your tax bill to zero; it won’t result in a refund if the credit exceeds what you owe.
For example:
You owe $3,000 in federal income tax.
You qualify for a $2,000 RegCF investment tax credit.
Your new tax bill? $1,000.
This concept has been tested and proven to spur investing activity. Indiana’s Venture Capital Investment (VCI) Tax Credit has been a tremendous success, offering a 25% tax credit on qualifying investments in early-stage Indiana companies—up to $1 million in credits. It’s helped activate angel investors statewide and catalyzed local innovation.
A federal version tailored to RegCF could do the same on a national scale. By reducing the risk of investing in startups—effectively turning the first $2,000 of capital into a no-risk proposition—we could unleash a wave of new micro-investors.
Here’s the math: If the U.S. allocated just $2 billion for this initiative, that’s enough to support one million new RegCF investors. The cost to the federal budget would be minimal—yet the potential boost to entrepreneurship and innovation could be transformational.
Mindset Corner: Entrepreneurship from the inside out
Neeti Mehta
Focus on your vision. Forget everything else – the naysayers, the doubters, challenges, or setbacks
One of the biggest misconceptions about entrepreneurship is that it starts outside of you—that it’s about spotting a gap in the market, launching an MVP, and charging ahead with sheer will to change the world.
This "outside-in" model is what most founders default to. They look at the world, see what’s missing, and then set out to force something into existence—often by building something new, raising capital, and trying to convince people to adopt it. Think Airbnb. Uber. These companies redefined entire industries, but it took massive capital to make that change happen. Why?
Because people like the idea of change, but they don’t actually want to change themselves. Not without an incentive. Airbnb had to make it financially attractive to sleep in a stranger’s house. Uber had to make it more convenient than hailing a cab. These platforms didn't just need great ideas—they needed money to move people.
This “force” approach is what I see over and over in the startup ecosystem:
Have an idea.
Build a prototype.
Raise VC money.
Try to gain market acceptance.
But what’s rarely said out loud is this: this strategy fails far more often than it succeeds. Tons of VC dollars are burned chasing product-market fit that was never really there. And worse, many founders end up disconnected from their own purpose—stuck in a loop of pitching, pushing, and hoping for external validation.
This is why I advocate for a different model: the “Inside-Out” approach to entrepreneurship.
The Inside-Out Approach: The Power Method
Before you write a line of code, sketch a wireframe, or pitch your idea—go inward.
Ask yourself:
Why do I want to do this?
Who will benefit?
What would this industry look like if my idea came to life?
What would success feel like?
Does it feel natural, intuitive—does it speak to my soul?
This isn't about analysis. It’s about alignment.
You're not just forming a business idea—you’re planting a seed in your imagination. And once planted, your job isn’t to force it to grow overnight. Your job is to nurture it daily. Water it with intention. Feed it with action. But always act from a place of inner conviction—not desperation for external validation.
In this mindset, you move differently.
You’re not begging the world to say yes.
You’re watching your vision unfold—with commitment, not control.
That’s the Power Method of entrepreneurship.
It requires focus. Patience. A quiet confidence that your idea is real—already real—and your job now is simply to stay aligned with it long enough to let the world catch up.
This isn’t magical thinking. It’s practical wisdom.
From Force to Flow
I’m not saying don’t raise money. Or that big bets never work.
But before you go out into the world asking others to believe in your idea—make sure you believe in it first. Deeply. Viscerally. Authentically.
Because when entrepreneurship comes from the inside out, you're not chasing success. You're attracting it.
You don’t have to force the world to bend.
You just have to be strong enough to let your vision pull you forward.
Wishing you a focused and fulfilling weekend,
– Gerry ([email protected])
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