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Comment by iknowstuff

4 days ago

Would you invest in e.g. a Croatian startup?

I bet not, because you don’t know their laws, and you don’t want to litigate in Croatian. You also don’t know the tax implications and chance is you will only find out when it’s too late.

So if an EU Inc happens, it needs to be based on a shared English law, otherwise it doesn’t change much

You can definitely invest trough a holding company set up in Ireland or in other lower tax jurisdiction and pay less tax that way. Even if you invest in a Croatian startup you can wrap in a UK structure to have the British courts available. Or you can structure the deal to include the British court as a venue for conflict mitigation. Also Irish courts are comparable and since 2020 have remote hearings (thank COVID). Either way, your main risk is not the law, but startup market risk.