AnchorZero Announces $8M Seed Round to Democratize Billionaire Tax Strategies, Led by Bain Capital Crypto and Spark Capital
June 25 2024 - 8:59AM
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 AnchorZeroAnchorZero 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.
Media Contactbcc@serotonin.co