The US Internal Revenue Service allows individuals to allocate funds from a self-directed IRA, solo 401(k) and certain 401Ks into venture capital funds.

This is similar to the allocation that pension funds sometimes make into high-risk asset classes. In general, most financial advisors do not recommend using retirement accounts to invest in venture capital because VC is high risk. Lower risk asset investments are typical for retirement funds.

For those who would like to invest, however, this is how it works:

1. Set up a self-directed IRA or 401(k) through a trustee or custodian that allows investment in venture capital. We can provide a list of trustees and custodians.
2. Fund the self-directed funds from an existing IRA or 401(k) through a rollover or direct contribution.
3. Notify your trustee or custodian about your intent to invest in être. They will guide you through the required paperwork.
4. Once être is approved, the custodian or trustee transfers the funds.
   • You cannot use personal funds and then reimburse the IRA.
   • Ensure that your IRA maintains sufficient liquidity to meet capital calls.