AnchorZero, a trailblazer in the FinTech space, recently announced an impressive $8m seed funding round.
The investment was led by Bain Capital Crypto and Spark Capital, with contributions from Ethereal Ventures, Mischief Capital, Pascal Capital, and Robot Ventures. Notably, multidisciplinary visual artist and angel investor Sarah Meyohas also backed the venture.
The company has quickly made a name for itself with its pioneering flagship product, which drastically simplifies the process of transferring startup equity into Roth IRAs.
This solution not only facilitates significant tax savings but also allows for tax-free compounding of gains. AnchorZero’s services have attracted a customer base comprising founders backed by top-tier investors such as First Round Capital, General Catalyst, HF0, Lightspeed Venture Partners, and Y Combinator.
AnchorZero’s mission is to democratize sophisticated tax strategies that were once the preserve of the ultrawealthy. By establishing its own IRA custodian and developing the requisite software from scratch, the company has removed the inefficiencies associated with traditional IRA custodians that rely on outdated third-party software. This makes it feasible for founders to incorporate their shares, angel investments, or even exotic assets into Roth IRAs, thereby optimizing financial growth and tax savings.
The recent funding will enable AnchorZero to further its mission by establishing a chartered trust company. This significant milestone will enhance the company’s ability to offer secure, fast, and compliant financial services. The charter, regulated by the South Dakota Division of Banking, highlights AnchorZero’s dedication to security and trust, reinforcing the integrity and reliability of its financial services.
Sunil Abraham, co-founder and CEO of AnchorZero, said, “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.
“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.”
Echoing Abraham’s sentiments, Santo Politi, co-founder & General Partner at Spark Capital, added, “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.
“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.”
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