Invest in what you believe in.
Crowdfunding is a popular way for entrepreneurs and newer business ventures to split up a capital raise among a multitude of investors as opposed to a more centralized venture capital structure. STRATA Trust Company recognized the investment potential for clients and in 2010 became the first custodian to provide self-directed IRA services in the crowdfunding space, working with some of the largest crowdfunding investment portals and marketplace lending platforms in the country.
A new world of Options
A self-directed IRA in a crowdfunding investment is a great way for investors to contribute to start-up ventures, business expansions and other ground floor projects. In the past, only accredited investors with proven financial security could acquire private stock and equity investments through crowdfunding. Now, with new regulations in place all investors can take advantage of crowdfunding investments.
Benefits of crowdfunding investments:
Finding investment options in privately-held ventures used to require having a vast network of business contacts. But with the surge of crowdfunding investment platforms, regular investors now have direct access to these types of investments.
Crowdfunding and marketplace lending platforms give investors access to many different asset types, including real estate, consumer and corporate debt, limited partnerships, limited liability companies, private stock, convertible notes, promissory notes and much more.
Traditionally, investors looking to invest in private deals had three options: find the investments on their own, join a group that will source deals for them or invest through a professional venture firm. But each of these options can be costly. Crowdfunding makes the process more efficient and accessible to the masses, thus lowering the cost.
With a self-directed IRA, you can invest in equity investment crowdfunding and marketplace lending investments on a tax-advantaged basis. STRATA acts as a custodian on your behalf, making it easy to set up an account and direct your investment into a crowdfunding investment that you believe in.
How to get started
Ensure the crowdfunding portal will accept investments from a self-directed IRA. If so, the crowdfunding portal will submit documentation for a pre-custody review.Learn More
Open and fund your IRA with a transfer, rollover or annual contribution.Learn More
Visit STRATA's Direct an Investment page and select the asset type that reflects the structure of your investment to get started. ,Learn More