AngelList partners with Grasshopper Bank, Fifth Third Bank, and Piermont Bank to provide banking infrastructure for venture funds and SPVs on our platform. These institutions facilitate capital management, transaction processing, and regulatory compliance while ensuring fund security through a segregated For Benefit Of (FBO) account structure.
How AngelList manages fund transactions
Every venture fund and SPV on AngelList is assigned a dedicated FBO sub-account at one of our partner banks. This structure ensures:
- No Commingling of Funds – Each fund’s capital is held in a separate business checking sub-account under its own legal name and Tax Identification Number (TIN).
- Automated Treasury Operations – AngelList’s Treasury system automates fund cash movements, reducing manual processing and ensuring real-time reconciliation.
- Structured Wire Review Process – All transfers, LP distributions, and capital calls require dual authorization and follow a structured review process to prevent unauthorized disbursements.
FDIC insurance and networked banking
AngelList’s banking partners are FDIC-insured institutions, providing up to $125 million in FDIC coverage per fund or SPV under our Networked Banking sweep account program. This setup enhances deposit security by distributing capital across multiple banks while maintaining full traceability.
For more details on Networked Banking and FDIC coverage, refer to: