What is AngelList’s networked banking?

AngelList’s networked banking is a suite of banking tools and services built for venture funds. Networked banking includes:

  1. A  sweep account program, which is optimized for enhanced deposit protection
  2. 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 FDIC insured partner banks, providing added deposit protection 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 infrastructure can provide up to $125M in FDIC insurance coverage per investing entity. Please note that while we strive for FDIC coverage for deposits in this program up to $125M, we cannot guarantee full coverage at all times. For example, your deposits may not have 100% coverage while they are being moved for investment or while new banking partners are being added. We expect that total deposit protection 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
  • Piermont Bank, Member FDIC

Vault Accounts

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. 

 

AngelList is a financial technology company, not a bank or FDIC-depository insured institution. Banking services are provided by Grasshopper Bank, N.A. and Piermont Bank; Members FDIC. Sweep programs allocate deposits across a network of FDIC-insured banks and are offered through AngelList’s partner banks, Grasshopper Bank, N.A. and Piermont Bank, for up to $125 million in aggregate coverage. The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank. Accounts are eligible for pass-through deposit insurance only to the extent pass-through insurance is permitted by the rules and regulations of the Federal Deposit Insurance Corporation (FDIC), and if the requirements for pass-through insurance are satisfied. There may be a risk that pass-through deposit insurance is not available because conditions have not been satisfied. In such cases, funds may not be fully insured in the event the insured depository institution where the funds have been deposited were to fail.

 

By participating in the sweep account program, you agree to deposit your funds into a deposit account at one or more of the banks listed below and/or another reputable bank or financial institution (a “Sweep Bank”) as determined by AngelList or an affiliate from time to time, with no additional notice to you, as may be required to facilitate your use of the sweep account program. Currently, the Sweep Banks include:

  • Grasshopper Bank, N.A., Member FDIC, which works with third-party agents and vendors American Deposit Management, LLC and its wholly owned subsidiary ADM Consulting, LLC (together, ADM”) and IntraFi Network LLC to distribute your deposits across a network of FDIC-insured banks, for up to the current Standard Maximum Deposit Insurance Amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions in Grasshopper Bank’s ICS Deposit Placement Agreements. Below are lists of the banks and savings associations with which Grasshopper Bank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper Bank or you).
    • Via ADM: (current as of February 2024): CrossFirst Bank, Trustar Bank, Bank of New England, Bell Bank, Keystone Bank, SSB, Pacific National Bank, Axos Bank, Western Alliance Bank, First Western Trust Bank, NexBank, First Bank (NJ), Studio Bank, Byline Bank, First Foundation Bank, Old National Bank, Third Coast Bank, SSB, Bankwell Bank, Webster Bank, NA, and Enterprise Bank & Trust.
    • Via Intrafi: more information here
  • Piermont Bank, Member FDIC, which works with third-party agent and vendor IntraFi Network LLC to distribute your deposits across a network of FDIC-insured banks, for up to the current Standard Maximum Deposit Insurance Amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions in Piermont Bank’s ICS Deposit Placement Agreements. See list of Intrafi network banks and savings associations linked above.

The current limit for access to FDIC insurance on your funds through the sweep account program is $250,000 per eligible depositor, per destination institution, up to a maximum of $125,000,000, subject to change at any time by AngelList.

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