AI Security Institute chair moves investment firm away from UK
The chair of the AI Security Institute has moved an investment firm he co-founded away from the UK, City PM can reveal, as concerns grow over an exodus of tech investors from Britain.
Serial entrepreneur Ian Hogarth, who set up Plural with Wise co-founder Taavet Hinrikus in 2021, has restructured the company, moving its headquarters from London to Estonia.
Recent company filings show Plural UK Management, in which Hogarth and Hinrikus each controlled a 20 per cent stake, is now wholly owned by a new entity called AS Plural Estonia.
In a statement, Plural said it took the move to “maximise operational efficiencies and flexibility,” adding: “We believe that this structure is most aligned with Plural’s long-term success.”
The firm, which holds shares in AI firm Robin and quantum business Phasecraft, said it would be maintaining current operations in the UK.
The restructure took place in February, according to company filings.
Tech entrepreneurs warn of exodus amid exit tax fears
The shift to Estonia comes as tech entrepreneurs fear the introduction of an “exit tax” by the Chancellor could push investment away from the UK.
Rachel Reeves is reportedly eyeing the new tax measure, also known as a “settling up tax”, under which individuals would face a 20 per cent charge on their gains should they choose to leave the country.
Tech policy group Startup Coalition has urged the Chancellor to rule out the move, adding that an exit tax would “not only tell founders that their ideas and innovations aren’t welcome, but that they should either get out early or not come at all.”
In an open letter to the Chancellor signed by hundreds of senior tech workers, the group said: “We share the Government’s ambition for growth and sound public finances. Progress on these will only be achieved by making the UK the best place to scale the next generation of global companies, not by punishing those who choose to leave.
“Instead of rebuilding trust with entrepreneurs, a potential exit tax sends the opposite message: the beatings will continue until morale improves.”
A host of well-known tech founders have already shifted their residency overseas from the UK, including billionaire Revolut founder Nik Storonsky and Checkout.com founder Guillaume Pousaz.
Plural pivots to Europe
Plural’s shift to Estonia comes amid a broader pivot to have “GDP-level impact in Europe.”
Last month the early-stage fund welcomed former Uber director Pierre-Dimitry Gore-Coty as a partner after the company opened a new Paris office.
Gore-Coty “is convinced there is a huge opportunity for seasoned operators to broaden the infrastructure available to burgeoning, ambitious entrepreneurs,” Plural said.
Hogarth, who founded the live music startup Songkick, was appointed chair of the government’s AI Safety Institute in June 2023 after he wrote an op-ed about the dangers of AI following a dinner party with AI experts.
The institute’s name was later changed to the AI Security Institute to reflect a more pro-growth approach to AI regulation.