Invest In Venture With An IRA

We make it easy to invest in our funds using a qualified retirement account.

Why Invest With an IRA

Investing in venture via a qualified retirement account is a smart strategy that over 1/3 of our investors employ, for three reasons:

  1. Horizon Matching. Venture capital as an asset class commands a higher rate of return than public equities in exchange for less liquidity – a liquidity premium. Retirement savings, like venture, are long term. Therefore, many investors see retirement accounts (which they won’t access for many years) as the ideal vehicle for venture investing.
  2. Available Funds. Quite simply, most of us have substantially more money in retirement accounts than we do sitting around in cash.
  3. Tax Advantages. Self Directed IRA’s enjoy the same tax advantages as traditional qualified retirement accounts.

How it Works

Self-directed IRA (SD IRA) accounts allow for investments in alternative financial products like venture capital and real estate, which traditional IRA accounts do not.

We make setting up a SD IRA for your AVG investment very easy. We do that by partnering with STRATA Trust Company, an independent 3rd party provider, who sets up an IRA on your behalf, invests at your direction in one of our funds, and manages all administration. Monies from your existing IRAs can be transferred to a new SD IRA without penalty and without jeopardizing tax-deferred status.

Here’s How Easy It Is

  1. However you decide to invest with AVG, the first step is verifying your status as an Accredited Investor. Our Investor Relations team is standing by to assist.
  2. Next, establish a new self-directed IRA account with STRATA via their online account setup. This takes ~10 minutes, and STRATA has a dedicated customer service team standing by.
  3. Complete a transfer form allowing STRATA to initiate the transfer of funds from your existing IRA to your new STRATA account.
  4. STRATA establishes your SD IRA account, funded with the transfer from your existing IRA provider.
  5. You return to the AVG portal to sign our Subscription Agreement.
  6. STRATA funds your AVG investment as soon as your transferred funds settle.

 

Click here for a detailed overview of the SD IRA process.

 

Our Partner – STRATA Trust Company

We chose STRATA based on their reputation for excellent customer service, strong back-end systems, and low fee structure.

  • STRATA is a regulated, self-directed IRA custodian with over 30,000 clients and nearly $2 billion in assets under custody. The company is led by a seasoned management team with over 350 years of collective experience in the self-directed IRA industry.
  • STRATA charges a flat $200 annual fee for AVG investors. There are no transaction fees for processing investments. Additionally, the annual fee doesn’t go up with the number of holdings within the self-directed IRA.
  • Most self-directed IRA providers service investors through a corporate call center. With STRATA, investors have a specific AVG-dedicated team that they can speak to about opening an account and processing self-directed IRA investments.
  • Undirected cash is held in an interest-bearing FDIC insured account. STRATA clients can invest in publicly traded stocks/mutual funds in addition to holding their alternative assets. STRATA has a relationship with TD Ameritrade, which allows investors to purchase/hold more traditional investments within their self-directed IRA.

Contact us to learn more