This guide will help you launch your Rollup. It covers:
- How to use Rollups in AngelList
- How to inform your legal counsel
- How to inform your SAFE holders
Visit the Investor's Rollup FAQ here for details on how Rollups work.
Yes. RUVs streamline future fundraises. Rollups streamline previously signed SAFEs. If you're looking for RUVs, click here.
- Neither change the financial terms of the existing underlying agreement.
- Rollups work for existing SAFEs.
- RUVs work for new SAFEs, equity rounds, and convertible notes.
- Both are available for a one-time fee or as part of AngelList Growth plan.
Using Rollups is easy. If you're not already on AngelList, you'll need to sign up.
To get started, navigate to Equity > Securities > Convertibles.
- Upload any SAFEs that were signed off-platform
- Invite your investors
That's it! Once invited, your investors will receive an email asking them to sign the Rollup Agreement. The executed agreement is emailed to both parties and automatically attached to the SAFE in AngelList.
Rollups are available independently or as part of AngelList's Growth plan. To upgrade from within your dashboard, navigate to Company > Billing.
Navigate to the SAFE that you would like to Rollup. Within the SAFE, click
Send Rollup Agreement. We've included some suggested copy, but you'll be able to customize the message for each investor.
First, investors will receive the custom invitation you send. After that, they'll get an invitation to sign the Rollups Agreement. This Rollups Agreement email also contains a link to an investor specific FAQ.
To view an individual, fully-executed Rollup Agreement, navigate to the specific SAFE and select Documents.
Once rolled up, SAFEs appear as one line on the AngelList Equity Overview page, which can be expanded to reveal the individual SAFEs. Scroll to the bottom of the Full Cap Table to see the line item.
It’s a good idea to loop in your company's legal team on your decision to run a Rollup.
The Rollup Agreement was carefully drafted by legal professionals and has been signed by leading venture funds.
If your legal team has feedback on the terms or structure of the Rollup Agreement, we’ll happily receive it for consideration in future versions. Our ability to offer the software infrastructure to support Rollups economically means we need to keep the terms standardized. We can't make one-off markups to the template agreements.
Here is some messaging you can use your counsel:
As you know, we have multiple SAFE investors. We wanted to give you a heads up that we will be using Rollups to streamline future company transactions.
Rollups streamline how many signatures our team needs to collect when we close future transactions by granting a limited power of attorney and voting proxy to approve certain transactions on behalf of our SAFE investors and the shares issued upon SAFE conversion.
We understand this approach is not the historical “norm,” but many great venture-backed companies are using it and leading venture funds are signing it. If you have questions, please see the FAQ for law firms. We are excited to innovate in ways that save everyone time and money.
AngelList automatically sends an email to your investors that explains Rollups, but you may also want to email your existing SAFE holders more details ahead of time.
Here is a template you can use:
We've been using AngelList to manage our raise capital and get the most out of our equity. They have a new product, Rollups, that will allow us to accommodate a distributed investor base and close future company transactions quickly and efficiently.
You should receive an invitation to sign the Rollup Agreement shortly that will contain more information. You can also review the Investor FAQ.
The Rollups Agreement does not change the economic terms of your investment. Instead, it streamlines how many signatures our team needs to collect when we close future transactions by granting a limited power of attorney and voting proxy to approve certain transactions on behalf of your SAFE and the shares issued upon its conversion.
The document includes additional context, and we have cc’d AngelList who can answer any questions you might have.
We hope to have signatures completed by [date].
Visit the Investor's Rollup FAQ for details on how Rollups work.
Email email@example.com with the company cc'd. Preferred law firms can extend their clients 15-20% discounts on Rollups.
The Rollup Agreement reduces the administrative costs of SAFE conversions for investors and the company. It allows the company to sign SAFE conversion documents on investors’ behalf for an equity financing round if the SAFE is converting according to its terms.
The Rollup Agreement allows investors to retain the economic and information rights of their SAFE investment while eliminating the need to sign off on every company transaction.
This agreement does not change the economic terms of existing SAFEs.
The Rollup Agreement features a limited power of attorney that authorizes the company to convert the SAFE according to its terms without further signatures from the investor.
The Rollup Agreement also provides a voting proxy that allows the company to vote the shares issued to SAFE investors in line with the shares voted by a majority of the company’s investors (typically this would be the lead investors from subsequent rounds).
The Rollup Agreement was carefully drafted by legal professionals, and leading venture funds have signed the Rollup Agreement. If you have feedback on the terms or structure of the Rollup Agreement, please send it to firstname.lastname@example.org. We'll happily take it into consideration in future versions — but we can’t accept one-off markups to the template agreements. Our ability to offer the software infrastructure to support Rollups economically means we need to keep the terms standardized.