Consolidation Vehicles
Consolidation Vehicles are a way for companies to simplify their cap table, by taking multiple investors and consolidating them into a single entity.How to get started
Contact us at help@rollups.com to get started with your Consolidation Vehicle.FAQs
Why would a company use a consolidation vehicle?
Why would a company use a consolidation vehicle?
Consolidation Vehicles:
- Make future transactions (such as equity financings or acquisitions) easier
- Clean up the cap table to make it easier to manage
- Clean up many SAFE issuances into a single row per set of terms.
Do Consolidation Vehicles preserve QSBS status for investors?
Do Consolidation Vehicles preserve QSBS status for investors?
Yes. While this is not tax advice, the process of consolidation does not
change the QSBS status of the stock. Consolidation Vehicles do not involve a
SPV or partnership entity – investors maintain their ownership for tax
purposes, and would be able to claim QSBS just as they would without a
Consolidation Vehicle.
Who can use Consolidation Vehicles?
Who can use Consolidation Vehicles?
We are currently supporting US-based C corporations, focusing on those that have raised venture capital.