FundersClub Enables Tax-Advantaged Startup Investing from IRAs
San Francisco, California (PRWEB) April 29, 2014 -- FundersClub, the world’s first online venture capital firm, has rolled out a new feature that allows any accredited individual to invest in startups via a tax-advantaged, self-directed IRA.
A "self-directed" IRA means that the investor, as the individual account owner, has complete control over selecting and directing his or her own individual retirement investments.
Investing in startups via a self-directed IRA gives an accredited investor the option to diversify his or her retirement portfolio to include the startup asset class in a tax efficient manner.
Any growth or earnings from an investor’s IRA investment can accumulate tax free; this would include any interest, capital gains, or dividend income from an individual’s original investment which could grow tax-deferred (after a company’s IPO or acquisition, in the event that such an event were to occur). Because investing in startups carries high risk, individuals should consult their financial advisor before deciding if and how to allocate their portfolio.
To offer this service, FundersClub partnered with The Entrust Group, a company that has provided account administration services for self-directed retirement and tax-advantaged plans for over 30 years.
About
FundersClub is the world’s first online venture capital firm, making it easy for elite
startups and accredited investors to connect. The FundersClub network of over 8,500 accredited investors get access to pre-screened, high-growth-potential startups, once only presented to an exclusive group of Silicon Valley insiders. In return, investors help companies succeed through capital and value-added support, from early-stage to successful exit or IPO.
Alex Mittal and Boris Silver launched FundersClub in July 2012 with one goal in mind – to change the way the world fundraises and invests. Together they had founded five companies, raised more than $20 million in funding and invested as angels in other startups. For FundersClub, the pair raised capital through their own platform and from other top investors including Y Combinator, First Round Capital, Spark Capital, Intel Capital, Andreessen Horowitz, Felicis Ventures, and Tim Draper. All FundersClub members with access to investment opportunities have certified as accredited investors.
To learn more about FundersClub visit http://www.fundersclub.com.
For further details on how the platform works visit: http://www.fundersclub.com/site/howitworks/.
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Susana Montes, FundersClub, http://www.fundersclub.com, +1 7863333091, [email protected]
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