AngelList’s networked banking is a suite of banking tools and services built for venture funds. Networked banking includes:
- A sweep account program, which is optimized for FDIC insurance
- External Vault accounts for long-term capital storage for funds with committed capital over $30M
Sweep Account Program
The networked banking sweep account program spreads your deposits across a network of other FDIC insured partner banks, providing added FDIC insurance coverage for each additional account opened at a partner bank. These accounts will be opened in your investing entity's name. Capital in AngelList’s sweep account program remains liquid and is generally available to deploy within one business day.
Currently, AngelList’s networked banking can provide up to $5.25M in FDIC insurance coverage per investing entity. Please note that while we strive for complete FDIC coverage for deposits in this program up to $5.25M, we cannot guarantee full coverage at all times. For example, your deposits may not have 100% FDIC coverage while they are being moved for investment or while new banking partners are being added. We expect that total FDIC coverage will increase over time as we add additional banking partners.
Our current sweep account program uses the following partner banks as receiving banks:
- Grasshopper Bancorp, Inc. (d.b.a Grasshopper Bank) N.A. Member FDIC
- Fifth Third Bank, National Association, Member FDIC
- Piermont Bank, Member FDIC
Vault accounts allow eligible fund managers (funds with over $30M in committed capital) to store excess capital in an external GSIB bank account for longer term capital storage. Excess capital is any investable capital that does not need to be deployed for 3+ months.
All banking services are provided through third-party banks. AngelList does not guarantee that every dollar held by a Fund on the AngelList platform will have complete FDIC insurance coverage. AngelList does not provide any insurance on capital held. Any insurance coverage is provided by the FDIC through third-party banking partners. AngelList is not a bank and is not a member of the FDIC.
Nothing in the above shall be construed as investment advice or financial advice of any kind.