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 enhanced deposit protection.
As of August 1, 2024, Networked Banking is a premium add-on service available to Venture Funds and Rolling Funds for a subscription fee of $5,000/year. Customers subscribed to our Treasury product receive Networked Banking included at no additional cost. Investors, Syndicates, and Roll Up Vehicles are not eligible to enroll in Networked Banking.
Existing Venture Funds and Rolling Funds enrolled in Networked Banking prior to August 1, 2024 may remain enrolled at no cost, and with no additional action required. “Crypto” and “Cannabis” Venture Funds and Rolling Funds enrolled in Networked Banking prior to August 1, 2024 may also subscribe to Networked Banking at no cost but must actively re-enroll by contacting their account manager.
For purposes of re-enrollment into Networked Banking by an existing fund customer, a Crypto or Cannabis Venture Fund or Rolling Fund is defined as a fund, who as of August 1, 2024:
- Had an investment thesis specifically involving the deployment of capital into crypto or cannabis operating companies, projects, token warrants, NFTs, the purchase of tokens, or other cryptocurrencies or
- That had deployed 15% or more of its committed capital into crypto or cannabis operating companies, projects, token warrants, NFTs, the purchase of tokens, or other cryptocurrencies.
On August 1, 2024 you will be able to confirm your Networked Banking enrollment status by navigating to the “Vehicles” section of your GP Dashboard, selecting the specific vehicle, navigating to the “Settings” tab for that vehicle, and selecting the “Networked Banking Settings”. If you have any questions or need help updating your Networked Banking enrollment status, please contact your account manager directly or reach out to us at lead@angellist.com.
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. Currently, the Networked Banking sweep 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
AngelList is a financial technology company, not a bank or FDIC-depository insured institution. 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 and AngelList does not provide any insurance on capital held. Any insurance coverage is provided by the FDIC through third-party banking partners. The information set forth above has been obtained from sources that AngelList believes to be reliable; however, these sources cannot be guaranteed as to their accuracy or completeness.
By electing to participate in the Networked Banking 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. Grasshopper Bank works with third-party agents and vendors Ampersand, Inc., American Deposit Management, LLC and its wholly owned subsidiary ADM Consulting, LLC, 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 Ampersand (current as of July 2024): Bank of New England, Old National Bank, Bankwell Bank, Enterprise Bank & Trust, Israel Discount Bank of NY, First Community Credit Union, Bank of Houston, Stearns Bank, and Texas Heritage National Bank
- Via ADM (current as of July 2024): CrossFirst Bank, Trustar Bank, Axos Bank, Keystone Bank, SSB, Pacific National Bank, Tristate Capital Bank, Byline Bank, First Western Trust Bank, NexBank, First Bank (NJ), Studio Bank, Third Coast Bank, SSB, Webster Bank, NA, Old National Bank, Bankwell Bank, and Enterprise Bank & TrustCrossFirst 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 (https://www.intrafi.com/network-banks)
- Piermont Bank, Member FDIC. Piermont Bank 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 Networked Banking 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.