Summary
On the 27th of September 2022, AngelList advised customers of an update to its Terms of Service and Disclosures. These changes will take effect from October 1st, 2022.
These changes cover how we interact with new and existing banking partners and outline the information we require from investors to work with these partners to meet our compliance (KYC/KYB) obligations.
Please see our frequently asked questions below. If you have any questions or concerns, please reach out to invest@angel.co.
Frequently Asked Questions
What were the AngelList changes that were referenced in the email?
We updated our Terms of Service and Disclosures to accommodate additional banking partners onto our service. This includes providing bank-specific disclosures as well as their respective end-user agreement to our customers.
What are the benefits to me as a customer?
Our new banking setup would allow AngelList to up-level our banking operations and infrastructure. Each customer will now have a new dedicated funding account per investing entity. Benefits include:
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- A dedicated sub-account number, and
- FDIC insurance up to $250k on each funding account, and
- Monthly statement generation starting for the month of Oct.
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Why do I need to provide additional information?
For a small group of investors, we did not previously collect certain information that our bank partners require for their compliance purposes.
What additional information do you need?
Only a small group of investors would need to update their investing entity information that was previously not collected. We will show an in-product warning and a modal for you to update your information in the next 2 weeks. The below information may be required:
Natural person entities:
1. Phone number
2. Address
3. DOB
4. SSN/ITIN
Company entities:
1. Phone number
2. Address
3. Tax ID
4. Incorporation Date
Why do I need to update my wire information?
You have a new and dedicated bank sub-account with specific instructions on your funding page.
If you have multiple investing entities under a single account (login), you will have unique wire instructions for each.
Why do my wire instructions list my investment entity as the beneficiary?
Your account is a sub-account under a master FBO account program owned by the bank, with AngelList as the program manager. This structure allows the bank to provide FDIC insurance on your sub-account and ensure that your sub-account is segregated and can be independently audited.
Will I need to update my ACH account link?
No.
Why am I getting a UI prompt when I log into Angel.co?
AngelList was previously missing important information that our new bank partners require for us to open investor funding accounts. It is crucial that this is updated to avoid any disruption in service on the platform.
Can I opt NOT to complete the additional information when prompted?
Unfortunately, there will be no exceptions.
Affected parties who do not provide missing information on their investment entities would not be able to invest or transfer funds to a different account on our platform. The only action they can do is to withdraw the funds back to their original retail bank account.
What will happen to my account if I refuse to provide the required information?
AngelList will return any remaining balance to your bank account on record on December 1, 2022. We will return the funds to your last active bank account.
If we are unable to complete a transfer, we will reach out to you to get another suitable bank account, under your name, to return the funds.
If you are unreachable after February 1, 2023, we will transfer the funds to a holding account until you reach back out to us at invest@angel.co