Sunday 29 November, 2020

80% of Israeli VC's are incorporated in Cayman- will they leave?

According to Haaretz news, 80% of Israeli venture capital funds are incorporated in the Cayman Islands and this might have major implications for Cayman, given its recent EU blacklisting as a non-cooperative tax jurisdiction.

Israel is the world capital for VC investments per capita and competes with Cayman and Delaware to have VCs incorporate there. In the past, because a company can incorporate so quickly in Cayman, it was the natural best option. But now, according to Haaretz, given Cayman's imposition of legislation over the past few days to comply with the demands of the EU, Israeli money might begin to leave.

According to Haaretz, "The new regulatory requirements are far-reaching and stricter, and involve greater costs and complexity for the funds. Of particular concern for the funds is the prospect of the new regulations requiring them to hand over data they don’t want made public."

Get the latest local and international news straight to your mobile phone for free: