Introducing: Consolidation Vehicles

(Consolidation Vehicles have moved to Rollups.com, AngelList's new brand for startups)

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 Consolidation Vehicles ("CV") for all U.S.based C-corporations and LLCs to solve this problem.

Consolidation Vehicles allow companies to optimize their cap table while preserving the economic rights of their SAFE investors.

With Consolidation Vehicles, stakeholders' securities are held by the CV administratively, thus reducing the number of direct rows on the cap table, while stakeholders maintain beneficial ownership of their same securities, and the economic and voting rights remain unchanged. Optionally, companies can pair the CV with a voting proxy agreement.

Founders that used CV's have reduced their cap table burden by 65% 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 CV's 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 CV agreements, eliminating most of the investor signatures we will need to get next round, saving Motif ~$20,000 and 2 weeks time. We highly recommend CV's to any founders with signed SAFEs. It's like a retroactive RUV for your previously signed SAFEs.