[draugadrotten]

Tax laws in Europe sucks for VCs compared to silicon valley or anywhere in the US. As I understand it, a silicon valley VC can balance wins/losses over many years, perhaps even indefinitely. In most of Europe, the balance can only be made year 1, then the loss is a permanent loss and a win the next year will be taxed fully. This means any sane VC will base her operation in another tax zone. Hence the problem with billions of euros in "tax havens" controlled by European "foundations". (EU is chipping away at that problem now but it will take many more decades to resolve.)

[pea]

UK has incredible tax regulations for investing in startups. Through SEIS you can write off 105% of losses and pay essentially no tax on profits.