Expanding Networked Banking
Modern banking software built for all venture funds with streamlined account creation and top tier FDIC coverage.
Jun 12, 2023 — 3 min read
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Over the past 8 years, AngelList’s banking infrastructure has powered 20k+ fund bank accounts to move over $57B safely and securely. In the aftermath of the Silicon Valley Bank collapse, AngelList launched Networked Banking for our full-service fund managers, which increased access to FDIC insurance through a sweep network infrastructure and partnerships with FDIC member banks.
With a single goal in mind: ensure that our customers are able to operate as normal, our team got to work.
— avlok (@avlok) June 6, 2023
Within the hour, our banking infrastructure team put together a plan to complete the technical work to ensure all our customers could utilize our multi-bank architecture. pic.twitter.com/a1CArQz8aW
As part of our mission to build the infrastructure that powers the startup economy, today we’re making Networked Banking available to all fund managers, including those not on our full-service offering.
With the broader release of Networked Banking, AngelList aims to address the needs of all VCs by unlocking seamless account creation on a sweep network infrastructure—providing top tier FDIC coverage eligibility, mitigating single-bank risk, and ensuring day-to-day operational flexibility.
How It Works
Networked Banking is designed to solve the banking needs of venture funds with a purpose-built solution:
- Accelerated Account Creation: Setup your account in under two minutes and connect to your existing bank to transfer funds.
- Multi-Bank Structure: Utilizing our sweep infrastructure, deposits are automatically distributed across a network of 20+ partner banks to ensure up to $8M in FDIC coverage eligibility for your operating capital.
- Seamless Dashboard: Setup multiple funds, and manage their operating accounts, connect existing bank accounts, and view transaction history, incoming and outgoing wires, as well as statements within a single, modern dashboard.
- Custom Wire Workflows: Setup custom and secure approval workflows to initiate, review, and approve wires.
Thousands of venture funds run on Networked Banking, and we've tailored it to meet the specific banking requirements and workflows needed by their managers, finance and operations teams, and fund admins.
Explore More
As funds using Networked Banking scale, they have the flexibility to graduate to AngelList Treasury for streamlined institutional capital management.
To learn more about Networked Banking, click here. To learn more about AngelList Treasury, click here.
**Update: As of August 1, 2024: Networked Banking will be a premium paid add-on that can be separately subscribed to. In general, Funds that have accessed Networked Banking prior to this date can continue to access the service at no charge but may require action to maintain their enrollment. Please see this Help Center article for more information or reach out to your Account Manager with any questions.
Disclaimer
AngelList is a financial technology company, not a bank or FDIC-depository insured institution. Banking services are provided by Grasshopper Bank, N.A. and Piermont Bank; Members FDIC. The Networked Banking sweep programSweep programs allocates deposits across a network of FDIC-insured banks and are offered through AngelList’s partner banks, Grasshopper Bank, N.A. and Piermont Bank, for up to $125 million in aggregate coverage for eligible participants. The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank. Account holders must explicitly elect to participate in the Networked Banking sweep program. Not all customers or accounts are eligible to participate in the Networked Banking sweep program and AngelList does not guarantee that customers or accounts will be eligible for additional FDIC insurance coverage.
