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 FDIC insurance
  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 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 $125M in FDIC insurance coverage per investing entity. Please note that while we strive for complete 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% 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
  • 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. 

 

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.

 

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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