Whilst the tax transparent partnership structure employed by most VC funds ensures that the tax advantages in starting a VC fund offshore are negligible; offshore jurisdictions still retain their political and regulatory advantages over onshore alternatives. Offshore jurisdictions like the Cayman Islands and British Virgin Islands (BVI) tend to have a significant degree of political and regulatory stability, based on the English legal system, creating a benign environment for launching and maintaining a venture capital fund.

Did this answer your question?