Rollups

Product Introduction

1. Rollups is a financial infrastructure platform designed to help startups manage equity complexity through specialized legal vehicles. It enables companies to consolidate multiple investors or stakeholders into single entities using Roll Up Vehicles (RUVs) for fundraising and Consolidation Vehicles (CVs) for cap table simplification. The product integrates with AngelList’s infrastructure to streamline investor onboarding, document management, and compliance processes.
2. The core value of Rollups lies in reducing administrative overhead and preserving tax benefits like Qualified Small Business Stock (QSBS) eligibility during equity consolidation. It provides startups with a scalable solution to maintain clean cap tables, accelerate fundraising rounds, and simplify acquisitions by minimizing stakeholder fragmentation.

Main Features

1. Roll Up Vehicles (RUVs): Enables startups to aggregate investments from multiple individuals or entities into a single legal structure, resulting in one line on the cap table. The process includes automated KYC/AML checks, accreditation verification, and banking integrations powered by AngelList. Companies can track round progress, close financings with a single wire, and reduce legal costs by up to 90% compared to traditional methods.
2. Consolidation Vehicles (CVs): Moves existing stakeholders (e.g., early SAFE holders, angels) into a unified entity to reduce cap table complexity while preserving QSBS eligibility. This feature is critical for later-stage companies preparing for acquisitions or follow-on financings, as it eliminates the need for dozens of signatures during transactions. CVs also mitigate risks of delays in M&A deals by consolidating fragmented equity ownership.
3. Acquisition Streamlining: Allows companies to consolidate acquisition targets’ stakeholders into a single entity before equity issuance, reducing administrative costs for acquirers. This feature ensures that mergers or acquisitions add only one line to the acquirer’s cap table, avoiding delays caused by multi-stakeholder coordination. It is particularly useful for startups negotiating stock-for-stock deals with complex ownership structures.

Problems Solved

1. Cap Table Fragmentation: Rollups addresses the challenge of managing cap tables with hundreds of stakeholders, which can deter institutional investors and delay financings. By consolidating stakeholders, startups avoid the operational burden of tracking small investors and reduce legal overhead during closings.
2. Target User Group: The product serves startups at all stages, from pre-seed companies raising initial capital to growth-stage firms streamlining acquisitions. It is also used by legal teams and CFOs seeking to optimize equity management for compliance and scalability.
3. Typical Use Cases: Common scenarios include raising a friends-and-family round via RUVs, consolidating legacy SAFE holders before a Series B, and preparing an acquisition target’s equity structure for seamless integration. For example, a startup with 120 small investors used CVs to reduce its cap table by 74 lines, enabling a successful Series B close.

Unique Advantages

1. Integration with AngelList: Unlike standalone platforms, Rollups leverages AngelList’s existing investor network and compliance infrastructure, allowing stakeholders to use pre-existing accounts. This reduces friction during onboarding and ensures compatibility with industry-standard workflows.
2. QSBS Preservation: Rollups’ Consolidation Vehicles are uniquely designed to maintain QSBS eligibility for stakeholders, a critical tax advantage not guaranteed by competing solutions. This feature protects long-term financial benefits for early investors during equity restructuring.
3. Scalability and Trust: The platform supports fundraising ranges from $50k to $100M+ and is trusted by over 50,000 investors and companies. Its adoption by top law firms and enterprises like Wand AI validates its reliability for high-stakes transactions, including M&A and secondary liquidity events.

Frequently Asked Questions (FAQ)

1. What is the difference between Rollups and Roll Up Vehicles (RUVs)? Rollups is the company offering two products: RUVs for fundraising and Consolidation Vehicles (CVs) for cap table simplification. RUVs specifically aggregate new investments, while CVs restructure existing stakeholders. Both products operate under Rollups’ platform but serve distinct phases of equity management.
2. How does Rollups integrate with AngelList? Rollups uses AngelList’s backend infrastructure for investor accreditation, banking, and document management. Investors with AngelList accounts can seamlessly participate in RUVs or CVs without additional paperwork, ensuring compliance and reducing administrative delays.
3. Can Rollups work with my existing cap table software? Yes, Rollups is compatible with all major cap table management tools, including Carta and Pulley. The platform outputs consolidated equity data in standardized formats, enabling easy integration without disrupting existing workflows.
4. What are the tax implications of using Consolidation Vehicles? CVs are structured to preserve QSBS eligibility, allowing stakeholders to retain potential tax exemptions. However, startups should consult legal advisors to ensure compliance with specific jurisdictional requirements during consolidation.
5. How long does it take to set up an RUV for fundraising? The process typically takes 1-3 days, depending on investor responsiveness. Rollups automates document generation, e-signatures, and wire transfers, enabling faster closes compared to traditional SPV setups.