About RUVs
What is a Roll Up Vehicle (RUV)?
Roll Up Vehicles (RUVs) are special purpose vehicles that make an investment into a company. RUVs provide a way for founders to efficiently allow investors into a financing round without incurring expensive legal fees or making the company’s cap table more complicated.
Instead of directly investing in the company, you would subscribe to a special purpose vehicle which will then invest into the company on the terms listed on the RUV investment page.
Why do founders use RUVs?
Founders prefer to use RUVs to aggregate multiple checks into a single entity. Normally to close investors, companies have to incur additional costs from lawyers and cap table vendors for every additional shareholder. The RUV allows founders to expand access, control closing costs, and ensure that the cap table is as simple as possible.
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How is this different from investing directly?
RUVs make the process of investing into companies easier to manage for everyone. Instead of directly being on the company cap table, investors become limited partners of a special purpose vehicle which itself will be on the company’s cap table. This relieves investors of the requirement to interface with the company’s legal team for shareholder consents, conversions, and ongoing questions. Instead you get a single dashboard on AngelList that provides the details of your investment.
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Roll Up Vehicle Cost Comparison Calculator
- In addition to keeping a clean cap table, Roll Up Vehicles can present significant cost savings over the lifetime of the company. This calculator presents an estimate of savings from using a Roll Up Vehicle over direct investments.
Are RUVs private?
Yes. Only people you invite with invite links will be able to see the RUV and invest. The deal is not published anywhere nor is it publicly accessible. Investors in the RUV will not be able to see who else invested or how much was raised.
How should I explain this to investors?
See why it works:
How an RUV Allowed Arrows’ Co-Founders to Build With Their “Friends”
”Most of our investors said the process was too easy.”
How Secureframe Maximized the Value of Its Cap Table With a Roll Up Vehicle
“It felt like we were managing one check instead of 50.”
How Rootly’s Founders Used a Roll Up Vehicle to Add Strategic Angels to Their Seed Round
“It was nice to be able to provide a self-service way to do something that’s usually complicated.”
How EFANI Raised $1.3M From Customers Using a RUV
“The RUV was the best solution for dealing with a lot of demand.”