Our new preferred deal structure is the automated SAFE (autoSAFE). This structure better serves our mission: increasing zero fee access for the self-directed investor by reducing the time, cost, and steps between Paid-In Capital and Invested Capital. It also neutralizes the issues founders previously encountered with allowing each investor to be on cap table.
|Admin Fee (generally paid pro rata by investor)||$0||Varies: $0-$12k||Varies: $6k-$12k|
|Who holds voting rights||Investor||Founder||SPV Lead|
|Custodian of end investor’s holdings||Cap Table Management System||Fund Admin||Fund Admin|
|Qualifying investment for funds/syndicates (IANAL)||Yes||No||No|
|Setup Time||Virtually Instant||~2 business days||~2 business days|
|GP Commit Customary||N/A||N/A||Yes|
|Can support rolling closes to company?||Yes||No||No|
|Time to close between end investor doc execution and company receiving funds||3-5 business days. Each commit closes as fast as ACH/Wire goes from investor bank account to company’s bank account||Varies: days to months. End investor’s funds go to RUV’s bank account and then once desired threshold is hit, founder initiate close to company’s bank account.||Varies: days to months. End investor’s funds go to RUV’s bank account and then once desired threshold is hit, founder initiate close to company’s bank account.|
|Deal level investment minimum||$1k||Varies: ~$0-$12k. Generally commits should be sufficient that expense ratio (admin fee/paid in capital) is ≤ 10%||Varies: ~$0-$12k. Generally commits should be sufficient that expense ratio (admin fee/paid in capital) is ≤ 10%|
|End investor investment minimum||$1k||$1k||$1k|
|Who signs if/when SAFE converts to equity?||Investor by default. Investor can also delegate right to sign for this specific case to founder||Founder||SPV lead|
|506c general solicitation support (optional)||No. But a cap table management system with autoSAFE functionality can add this in future||Yes, generally fund admins now support this capability||Yes, generally fund admins now support this capability|
|Ability to issue different SAFEs to different investors in parallel||Yes||No. A RUV generally only invests in one instrument||No. A SPV generally only invests in one instrument|
|Cap table line items||N (where N is number of investors)||1||1|
The Alliance (with extremely rare exceptions) will not publish SPVs (into primary or secondary equity) until it has published 100 autoSAFEs.