NEW YORK, June 25, 2024 (GLOBE NEWSWIRE) -- AnchorZero, a platform enabling founders to leverage Roth IRAs for substantial tax savings and financial growth, today announced its $8M seed funding round led by Bain Capital Crypto and Spark Capital with participation from Ethereal Ventures, Mischief Capital, Pascal Capital, and Robot Ventures. Angel investor Sarah Meyohas, a multidisciplinary visual artist, also participated in the round. The company's flagship product simplifies the process of transferring startup equity into Roth IRAs, unlocking potentially hundreds of millions in tax savings and facilitating tax-free compounding of gains. Customers include founders backed by leading investors such as First Round Capital, General Catalyst, HF0, Lightspeed Venture Partners, and Y Combinator.
AnchorZero aims to democratize advanced tax strategies traditionally reserved for the ultrawealthy. Its first product lets founders use Roth IRAs for significant tax savings. Getting startup equity into an IRA used to be practically impossible, because legacy IRA custodians are inefficient and run on antiquated third-party software. By forming its own IRA custodian and writing the custodial software from scratch, AnchorZero has made founder Roth investing fast and easy. AnchorZero allows founders to include their shares, angel investments, or exotic assets in their Roth IRAs for significant tax savings and financial growth.
"At AnchorZero, we're committed to making sophisticated tax strategies accessible to everyone. Our founding Roth IRA product enables all founders to save potentially hundreds of millions of dollars and is the type of product that previously was available only to the ultrawealthy and well-connected" said Sunil Abraham, co-founder and CEO of AnchorZero. "If we’re successful, every student working out of their garage on a promising new venture will have access to the same tax products as that of a serial entrepreneur."
With strategic planning, notable founders and public figures have managed to build multibillion-dollar Roth IRAs. Holding equity within a Roth IRA offers significant tax advantages, as any gains realized upon exit are shielded from capital gains taxes, and these initial gains can be reinvested to grow tax-free. Despite the immense financial benefits, the process of getting equity into a Roth IRA has historically been complex and inaccessible, especially for first-time founders. AnchorZero addresses this challenge by simplifying the process, making it an attainable and financially impactful decision for all founders.
“Custody and trusts companies have always been an important, but sleepy, part of financial services. AnchorZero is shining a bright light on the industry, modernizing its software stack and opening it up to innovation,” said Santo Politi, co-founder & General Partner at Spark Capital. “The team has built the first killer app of the category: allowing all founders to use Roth IRAs to purchase their founder shares and see their equity value grow tax-free. It is one tax management tool that any founder thinking of starting a company should actively consider.”
This funding has enabled AnchorZero to establish a chartered trust company and to accelerate the development of additional tax-focused products for founders and employees. The establishment of a chartered trust company is a significant milestone for AnchorZero, providing a robust foundation for its innovative financial services. The trust company allows AnchorZero to act as an IRA custodian, ensuring that it can manage customer assets with a higher degree of safety, speed, and regulatory compliance compared to other fintechs. The charter, regulated by the South Dakota Division of Banking, underscores AnchorZero's commitment to security and trust, providing a legal framework that enhances the integrity and reliability of its offerings.
"In theory, the tax code applies equally to everyone, but in reality, the lack of access to sophisticated tax planning creates a huge disparity," said artist and investor Sarah Meyohas. "AnchorZero's mission is about fairness and providing everyone with the same opportunities to maximize their financial growth. Thanks to AnchorZero, I can now confidently optimize my own investments, and I recommend all founders I invest in to do the same."
Founded in 2021, AnchorZero is led by Sunil Abraham and Diana Siu, who recognized this gap in financial planning for founders. AnchorZero is poised to redefine the financial strategies available to all, making advanced tax planning accessible and straightforward.
For more information, visit www.anchorzero.com.
About AnchorZero
AnchorZero is a cutting-edge fintech company dedicated to democratizing advanced tax strategies, making them accessible to everyone. Founded with the vision of transforming the financial landscape for tech founders, AnchorZero simplifies the process of placing startup equity into Roth IRAs, offering significant tax savings and financial growth opportunities. Supported by prominent investors including Bain Capital Crypto, Spark Capital, and other notable firms, AnchorZero aims to level the playing field by providing tools and resources that were once exclusive to billionaires. With a commitment to safety, innovation, and customer success, AnchorZero continues to develop tax-focused products that empower founders and employees to achieve their financial goals. For more information, visit www.anchorzero.com.
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