What is the investment structure?

The investment structure is a “Roll Up Vehicle” or “RUV” which is created and administered by AngelList, Quantic’s equity management company. The RUV (sometimes known as a Special Purpose Vehicle, or “SPV”) is a popular investment structure that allows companies to take on a group of small investors (often at the “Angel” stage). Under the AngelList RUV, investors receive an ownership share of a SPV that holds a convertible note that converts into Quantic and Pedago equity (stock) at the next company funding round, at a 25% discount to the price of the funding round. In the time period between the closing of the RUV and the conversion to equity, the notes will each earn interest at 6% (which will be added to the balance when converting to equity). The convertible notes also have customary terms between the investors and the company. These notes have the same terms as notes executed earlier this year by founders and investors. 

AngelList provides a FAQ for investors about RUVs here. You may also reach out to Quantic’s leadership team with any questions at funding@quantic.edu. You may also contact AngelList at rollups@angel.co.