[jandrewrogers]

The requirement was only that you acquired the stock when the company has less than $50M (now $75M) in assets. If the company now has $1B in assets, you still get the tax exclusion up to the limit on stock that was purchased back when the company was small.

It specifically advantages investment in small companies that then turn into large companies.

[jiveturkey]

not exactly. you have to acquire the stock at a time before the assets ever exceeded $50M. If the balance sheet is $51M and then goes down to $49M and then you exercise, you are not QSBS eligible.

it's that ever part that the GP got confused about. the company assets have to have never exceeded $50M before you acquire the stock, not just at the time you acquire it.