According to Sifted, venture capital firm Plural has moved its parent company from the UK to Estonia amid growing concerns about potential tax increases in the upcoming Autumn Budget. Founded in 2022 by Wise cofounder Taavet Hinrikus and serial entrepreneur Ian Hogarth, the firm manages a €500m fund and has made over 50 investments totaling €800m across two funds. Company filings reveal the shareholding transfer to an Estonian entity happened back in February, switching from the previous UK-based parent with Estonian subsidiary structure. Plural claims this is purely about “regulatory and operational efficiencies” and that none of its partners are changing locations. The move comes as UK finance minister Rachel Reeves reportedly considers a 20% exit levy on shareholders leaving the country.
The European strategy becomes clearer
Here’s the thing – Plural’s explanation about “regulatory efficiencies” actually makes a ton of sense when you look at their recent moves. They just hired their first France-based partner, former Uber exec Pierre-Dimitri Gore-Coty, who specifically said he’d focus on Europe-wide investments. With a growing portfolio that includes fusion startup Proxima, spacetech The Exploration Company, and quantum computing outfit Phasecraft, having an EU-domiciled parent company simplifies everything from fundraising to compliance. It’s basically positioning themselves as truly European rather than UK-centric, which is smart given the post-Brexit landscape.
The UK’s looming tax problem
But let’s be real – the timing here is everything. When a major VC founded by someone as prominent as Taavet Hinrikus makes this move right before an Autumn Budget that might include exit taxes, it sends a powerful signal. The reported 20% levy on British assets for departing shareholders would hit venture firms particularly hard. And Plural isn’t alone – UK tech leaders are already urging the government to rule out such measures. This could be the start of a worrying trend for the UK’s tech ecosystem. When the smart money starts voting with its feet, politicians should probably pay attention.
Not all sunshine in the portfolio
Now, it’s worth noting that Plural’s track record has some bumps too. They backed legaltech Robin AI, which recently conducted layoffs and just got hit with a winding up petition from HMRC. That’s exactly the kind of situation where having your parent company in a different jurisdiction might provide some insulation. The firm’s insistence that they’re “not leaving the UK” feels a bit like having your cake and eating it too – they keep access to UK talent and deals while protecting themselves from potential tax hits. It’s a clever structural move that other VCs are probably watching very closely.
