- We are an angel syndicate with >1,250 accredited investor members. For each investment, we create a SPV on AngelList. The founder only deals with one signature, one cap table entry, and one wire.
What is our investor member base?
- Self directed angels. Usually domain experts in an engineering discipline, sales, etc. Many have worked at or are currently working at top startups
What makes RUV Alliance unique?
- We do not charge our members any carry, management fees, or commission
- We primarily source deals demand first: we aggregate interest from our members and then approach target companies.
- We encourage direct relationships between founders and syndicate members
How does the Alliance make money?
How do we source deals?
- Members make non-binding soft commits using our DealBot: How to use DealBot. Once there are sufficient soft commits (~$80k), an Alliance admin will lead on initiating a conversation with founder.
How can a member refer a deal?
What is our usual check size?
- We start with $80k as our administrative minimum. Historically, check sizes have ranged from $50k-$600k depending on company stage, traction, etc.
- What’s the max allocation size?
- This is up to the founders. If committed $ are too high, we can trim back investors pro rata or cut individual investors.
Why does the Alliance create a deal memo for each deal?
- Decks often are a supporting element to a synchronous conversation. The Alliance operates asynchronously so self-contained memos are a better fit for our members
- It is easier for investors to rapidly analyze a deal in memo form versus deck form. Decks often have extraneous design elements that obfuscate the fundamentals of an opportunity
- Fund managers and syndicate leads will generally write a memo when they want to invest in a deal. A founder creates a deck and then an investor takes that deck + conversation with founder and writes a memo. If a founder writes a memo to begin with, the founder and investor can focus their energy on diving deeper into the business/iterating on the model versus just gathering information and migrating between formats.
- Our memo template is a continually evolving superset of the questions we see funds and syndicate leads ask in their memos. We have many fund managers and syndicate leads in our group. Our hope is that if one of them is interested in your deal, the memo you create should be >80% of what they would write. This makes it much easier for them to do the deal.
- It is easier to suggest edits and make comments on a memo than a deck. The limiting factor for most early stage founders is conceptual, not capital. It’s easier to debug and iterate on a business model concept when that concept is clearly laid out in prose. Often investors can help spot and resolve business model issues that could otherwise take founders weeks/months/years to fix.
- Questions are objections when it comes to investors. The more questions a founder can answer in a memo before an investor surfaces them, the higher the probability any given investor will invest.
- If this is your first time writing a memo like this or your first time writing a memo for your company, it will feel hard. Lean into that feeling of difficulty: it’s a sign that you’re doing the work to translate your vision into something investors can comprehend. It’s not uncommon for founders to have major breakthroughs while writing memos of this type. Writing a memo helps founders defeat the Curse of Knowledge
- Memos are cheaper, easier, and faster for founders to make than decks. Many investors find “designed” decks frustrating and often incomprehensible.
Does the founder have to accept the SPV’s funds after the funds have been raised?