There are multiple ways to participate in the equity or debt side of a startup in an SDIRA with checkbook control, such as a venture fund, SPV, or crowdfunding site, and more...
Your Self-Directed IRA LLC or Solo 401(k) could...
- become a limited partner in venture capital or private equity fund that invests in startups or private companies
- become a member or acquire membership units of a special purpose vehicle (SPV), SPVs are usually structured as LLCs, to invest directly in a startup or private company
- invest in a startup or private company directly by writing a check or wiring funds to the startup’s bank account after signing deal documents. Startup financing often takes the form of a Simple Agreement for Future Equity (SAFE), a convertible note, or preferred stock.
- invest in a startup through a crowdfunding site, such as Republic. co
How does the IRA/LLC structure work?
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