What are the different ways I can invest in a startup with a Rocket Dollar retirement account?

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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?

 

Startups Basic IRA Flow (2)

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