Roll-Up Vehicle (RUV)

Roll-Up Vehicle (RUV)

Definition: A Roll-Up Vehicle (RUV) is an investment consolidation mechanism structured as a Special Purpose Vehicle that enables multiple angel investors to collectively finance a startup through a single entity.

Key points:

• Streamlines capitalization table management by converting numerous individual investments into one line item
• Simplifies administrative oversight while preserving each investor's economic interest
• Serves as an intermediary structure where angels invest in the RUV, which then invests in the target company
• Gained prominence through investment platforms like AngelList

For founders navigating early-stage financing, RUVs offer an elegant solution to the logistical challenges of managing relationships with numerous small investors. Rather than tracking and communicating with dozens of individual angels, the company maintains a formal relationship with just the RUV entity. Meanwhile, angel investors benefit from access to deal flow without contributing to cap table complexity that might deter future institutional investors.

RUV In Practice:

When a founder secures interest from 25 different angel investors contributing varying amounts, instead of processing 25 separate investments, these investors pool their capital into an RUV. On the startup's cap table, only the RUV appears—creating cleaner corporate governance while still allowing all 25 investors to participate in the company's growth journey.