Launch an institutional-grade VC fund in a day with no up front costs. 
Meet Start Fund
Previous Post
Next Post
1

Asked by

Community Member

on

in

Venture Deals

Is it Ok for a fund to invest into a company via an AngelList RUV?

Is it Ok for a fund to invest in a startup via their AngelList RUV? It's a highly oversubscribed deal and the company is limiting our check size to significantly less than what we normally do and is also asking to come in via their RUV. What are the challenges with doing this if it's even Ok to do?
1 See in Base
0

Answered by

Community Member

on

No. An RUV is considered a non-qualified investment, just like any other SPV. In addition, it will delay your taxes and because you're not on the cap-table, you will struggle to get the information required to realize markups and manage distributions. 

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?