You will be asked to set up and deposit funds into an account managed by New Direction IRA, Inc. (“New Direction”). New Direction is being used to create custodial trust accounts on your behalf to manage your SeedInvest Auto Invest assets. Your account with New Direction will not be an Individual Retirement Account (IRA) and hence will not affect your regular IRA contribution limits.
You can deposit or withdraw cash from this account at any time.
When a startup listed on the SeedInvest platform becomes eligible to receive Auto Invest investments, you will automatically opt-in to deals in which you are legally allowed to invest in accordance with regulatory rules and restrictions.
You will automatically be notified of each investment and can opt-out of any such investment you choose through your Auto Invest Management page provided the investment has not formally closed.
Startups conducting their raises under the Reg D or Reg CF offering exemptions must raise at least $250K before they can receive Auto Invest investments. These companies are typically smaller, more early-stage, and are seeking to raise relatively smaller amounts of capital.
Startups conducting their raises under the Reg A+ offering exemption must raise at least $2M before they can receive Auto Invest investments. These companies are typically a bit more developed and seeking to raise at least $3M-$5M.
You can pause or restart SeedInvest Auto Invest at any time through your Auto Invest Management page.
You can change the amount allocated to your account at any time and as often as you’d like via your Auto Invest Management page. Please note: there may be regulatory restrictions regarding how much you can invest into startups based on your financial situation.
While this is a possibility, SeedInvest typically secures allocations (i.e. the portion of a company’s raise that must be reserved for investors in the SeedInvest network) that are large enough to accommodate Auto Invest investments. However, if there is a specific company that you don’t want to miss out on or increase your exposure to you can make an investment via the normal investment process (subject to deal-specific investment minimums).