Is it Ok for a fund to invest in a startup via their AngelList RUV? It's a highly oversubscribed deal and the company is limiting our check size to significantly less than what we normally do and is also asking to come in via their RUV. What are the challenges with doing this if it's even Ok to do?
No. An RUV is considered a non-qualified investment, just like any other SPV. In addition, it will delay your taxes and because you're not on the cap-table, you will struggle to get the information required to realize markups and manage distributions.