## The HardTech Survival Hack
DeepTech, Robotics, and Biotech startups take 5 years to launch a product. During those 5 years, their revenue is $0. VCs hate funding 5 years of pure research. Brilliant founders use the US Government to secretly co-fund their PhD salaries.
### FAQ
**Q: How does a startup get a tax refund if they don't have profits?**
A: The R&D Tax Credit (Section 41). The US government desperately wants to maintain technological superiority over China. Therefore, if a startup is paying US citizens to do novel technical research, the IRS will literally allow the startup to wipe out their payroll taxes (up to $500,000 per year). Instead of paying Social Security and Medicare taxes, the startup keeps that cash in their bank account. Receiving a $500,000 R&D check from the government is mathematically equivalent to raising $500k from a VC, but without having to give away 3% of your company's stock.