How to Raise Capital Using RUVs
Raising capital as a startup founder is hard. In order to help more founders raise capital, more funding options have become available over the past few years. One of which is rollup vehicles (RUVs).
As AngelList puts it, “Rollup Vehicles (RUVs) are special purpose vehicles (SPVs) that allow founders to consolidate multiple smaller investors into a single investing entity. It saves founders (and their legal teams) the hassle of collecting funds and signatures from many individuals, both to close the round in question and on future stockholder consents.”
Jeromy Sonne, CEO and Founder of Decibel, recently leveraged RUVs and online communities to help raise a financing round. Jeromy was able to raise ~$150k from 41 different investors. The best part? He didn’t have to do a single investor call.
Jeromy joined us to break down how he raised using an RUV. A few topics we discussed:
- What is a rollup vehicle
- How do RUVs compare to SAFEs and other instruments
- How they can complement a financing round
- What tools and resources exist for raising via RUVs
- How Jeromy raised using an RUV