Direct | RUV | SPV | |
---|---|---|---|
Investment Position | Direct shareholder on cap table | Limited partner in RUV | Limited partner in SPV |
Setup Costs | • Low up-front costs to company & investor • Legal costs for company in future rounds | • Company pays fee for RUV administration | Company pays no fee • Investor pays: • Admin fees • Management fees • Carried interest |
Ownership & Returns | 100% ownership of invested amount | 100% ownership of invested amount (full investor economics preserved—no fees or carry) | Investors ownership & returns are reduced by Admin Fees_,_ Management Fees, and Carried Interest |
Administration | Self-managed | Centralized through AngelList’s full-service platform | SPV admin |
Decision Making | Investor | Professional management by AngelList’s investment advisor* (following standardized process) | SPV lead |
Voting Rights Control | Investor | • Non-material: Company • Material: AngelList’s investment advisor* | SPV lead |
Follow-on Management | Self-managed | Professional management by AngelList | SPV lead |
Pro-Rata Rights | • Direct negotiation with company • Individual responsibility | Generally not available or individually negotiated with the company | Lead negotiates & decides participation |
Pay-to-Play | • Direct obligation to participate • Individual responsibility | Not available | Lead decides & may require additional capital |
Exit Management | Self-managed | Professional management by AngelList’s full-service platform | SPV lead |