![]() ![]() ![]() “EFANI has grown entirely by referrals from existing customers. By giving loyal customers skin in the game, he believes he’ll be able to maximize exposure for his company. ![]() Using an RUV as a Marketing StrategyĪnother key benefit of allowing small checks to invest: word of mouth marketing.Īwan said he’s been able to grow his business 200x through word of mouth. “I only have to call a few people when I need something, but I have dozens of folks at my fingertips who are ready to help,” said Awan. Thanks to the RUV, Awan closed the round with only three additional names on his cap table, including the RUV. “Before we knew it, we were oversubscribed.” “The RUV allowed us to accept any check size, which was a selling point because some investors didn’t have a lot to put in,” said Awan. Awan said demand was so high that he had to stop accepting checks. Overall, 90% of the capital for EFANI’s fundraise came from customers. The RUV comprised more than half of EFANI’s $2.5M seed round. In total, EFANI raised $1.3M from 77 different investors through its RUV, including Ali Moiz, founder of, Matthew McDonald, co-founder of Equipment Share, Joe Levy, CTO of Sophos, Cindy Bi of Capital X, and Elizabeth Yen of Hustle Fund. “It made life so much more simple,” Awan said. Meanwhile, AngelList oversaw accreditation checks, identity verification, signatures, and wire transfers-all at no cost to Awan. From that link, investors could review the terms of the deal and instantly wire funds into EFANI’s RUV. “The RUV was the best and really only solution for a founder like me dealing with a lot of demand.”Īfter providing AngelList with some basic information about his company and fundraise, Awan received a single link to share with investors. “I couldn’t take all that money without an RUV,” said Awan. For Awan, who had over 150 people interested in investing, this was the perfect fit. What’s more, RUVs are run by the founder, meaning investors don’t have to pay carry. The Solution: Keep the Cap Table Clean With a Roll Up VehicleĪ Roll Up Vehicle (RUV) allows founders to bring in up to 249 investors as a single line on their cap table. Then, he came across a much simpler solution. “So there’s no way to have your cake and eat it too.”Īwan considered asking a fund manager to set up a special purpose vehicle ( SPV) for his company, but realized that meant his customers would likely have to pay carry to that GP. “This is a bit of a contradiction, because every check is another line on the cap table,” said Awan. When he sold his previous company, his bottom line took a hit from the legal and accounting fees he had to pay-even with just 12 angels on the cap table.įor this reason, he wanted to keep a relatively clean cap table after EFANI’s seed round, while still offering allocations to his customers. The Problem: It’s Expensive to Allow Strategic Angels to InvestĪwan’s a multi-time founder. “It’s a testament to the power of our product.”Īt the same time, Awan was all too familiar with the challenge this presented. “About 20% of our customers wanted to invest,” said Awan, whose company offers a cellular plan that encrypts users’ data and protects them from hackers. When it came time for EFANI to raise its seed round, Awan was pleasantly surprised to find his customers also had his back. Haseeb Awan’s secure mobile service, EFANI, is all about protecting customers. ![]()
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