Introducing: Rollups
Streamline your cap table. With Rollups, founders get faster equity rounds and lower administrative costs.
Sep 13, 2022 — 2 min read
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The most common question we receive from founders running Roll Up Vehicles is if there’s a way to retroactively clean up the SAFEs already on their cap table. Every direct SAFE results in additional administrative overhead during an equity financing and creates risks for closing the round if signatures are delayed.
Today we’re launching Rollups for all U.S.based C-corporations to solve this problem.
Rollups allow companies to optimize their cap table while preserving the economic rights of their SAFE investors. The Rollup Agreement contains a limited purpose power of attorney and a voting agreement that allows the company to sign conversion documents as long as the SAFE is converting according to its terms. The result is effortless SAFE conversions during an equity round for both founders and investors.
Founders that used Rollups have reduced their investor signature burden by 90% and expect to close their equity rounds up to two weeks faster with $1,200 in administrative cost savings per signature.
Marie Schneegans, co-founder of Motif, used Rollups to expedite her next fundraising round:
Motif signed over 30 SAFEs to raise initial funds. We feared chasing down investor signatures would make future financings slower and more expensive. But our investors were happy to sign the Rollups Agreement, eliminating most of the investor signatures we will need to get next round, saving Motif ~$20,000 and 2 weeks time. We highly recommend Rollups to any founders with signed SAFEs. It's like a retroactive RUV for your previously signed SAFEs.
Integrated Cap Table Management Solutions
For companies with their cap table on AngelList, “rolled up” SAFE investors appear as one row on Stack’s cap table so founders can view their cap table through the lens of required approvals.
With the Growth plan, Rollups, RUVs, and Stack’s cap table work together to optimize cap table and equity management.
Founders can purchase one-off access to Rollups or gain access to Rollups on select plans on AngelList Equity Management. Learn more here.
Disclaimer
Quotes included in these materials related to AngelList's services and should not be construed in any way as an endorsement of AngelList's advice, analysis, or other service rendered to its clients. This document and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or legal, tax, or financial advice of any kind. Pricing and terms of any services or feature are subject to change at any time.
