AngelList’s Networked Banking service provides FDIC insurance coverage through its sweep account program, which distributes deposits across a network of FDIC-insured partner banks.
Currently, this program offers up to $125 million in FDIC insurance coverage per investing entity, subject to availability. However, while we strive to maintain this level of coverage, we cannot guarantee full FDIC insurance at all times. Coverage may fluctuate due to factors such as:
- Movement of funds for investment purposes
- Addition or removal of banking partners
How FDIC coverage works
Each deposit in the sweep program is placed in a participating partner bank, with FDIC insurance covering up to $250,000 per eligible depositor, per destination institution. By spreading deposits across multiple banks, the program aims to increase total FDIC coverage.
Example:
If a fund has $500,000 deposited at Grasshopper Bank, AngelList’s sweep program will automatically create a mirror subaccount at Piermont Bank and move the excess $250,000 there. This ensures that the full deposit remains within the FDIC coverage limits across multiple banks.
Current banking partners facilitating Networked Banking deposits:
- Grasshopper Bancorp, Inc. (d.b.a. Grasshopper Bank), Member FDIC
- Piermont Bank, Member FDIC
- Fifth Third Bank, Member FDIC
For customers not enrolled in Networked Banking, FDIC insurance is determined by the specific partner bank holding your funds. You can contact your account manager or refer to your GP Dashboard for more details about where your deposits are held.