The Plan for AngelList Equity
Cap table management for modern companies.
Aug 9, 2023 — 4 min read
Written by
AngelList Roll Up Vehicles (RUVs) changed how companies issue equity with investors (read launch post). However, RUVs were only the first step in a long term plan.
Equity is a broken currency
Companies use equity to attract investment and talent, but equity is still a deeply inefficient currency.
The process of selling equity to investors can involve dozens of people and weeks of effort. Founders use instruments like the SAFE to defer some of the overhead costs, but that’s only temporary until their next equity round. Similarly, to grant employee equity, it can take months and thousands of dollars in admin costs to manage equity incentive plans, get board consents, and formally paper the grant. Even after an employee receives their equity awards, the value is often opaque.
While liquidity is distant for most companies, equity transactions should still be frictionless so that companies can extract the most value from their equity.
AngelList Equity
Transforming equity into a frictionless currency requires a modern cap table solution, which is why we built AngelList Equity. Other cap table management tools were built for the last era of cap table management by taking spreadsheets & paper certificates online. Cap tables on AngelList Equity today have all of that basic functionality improved by innovations like RUVs and AI powered legal document review.
AngelList Equity outperforms other cap table solutions today because of innovations like RUVs that clean up the cap table and pricing that does not penalize companies for adding investors.
AngelList Equity's AI powered legal document review
