For Fund Managers & Investors
A banking network built for resilience
AngelList’s networked banking provides increased customer access to FDIC insurance and mitigates single-bank risk.
A reliable, secure, and scalable banking network
A networked approach.
Funds are distributed across our network of partner banks, increasing FDIC insurance coverage.
Robust controls.
Only specified team members can access, manage, and deploy funds.
Scales with you.
Accounts are dynamically created as your fund size grows.
AngelList’s networked banking:
How it works
What is networked banking?
Networked banking is a sweep account program created in partnership with multiple banks.
Deposits at a single bank are entitled to only $250K in FDIC insurance coverage. This limit exposes depositors in excess of $250K to risk in the event of a bank failure.
Networked banking provides a way to automatically spread deposits across a network of banks, providing up to $250K additional FDIC insurance at each bank.
How does AngelList’s sweep account program work?
AngelList’s banking partners work with companies to distribute deposits across a network of banks, including PNC and Capital One. These programs automatically create new accounts in your fund’s name at each partner bank. Because each account is entitled to up to $250K in FDIC insurance coverage, deposits made through AngelList’s networked banking can receive additional FDIC coverage.
FAQ
As of March 14, 2023, your deposits are eligible for up to $2.75M in FDIC coverage via AngelList’s networked banking partners, including PNC and Capital One. We are rapidly expanding this network of FDIC-insured banks to scale with your needs and cover larger balances. If your fund balance needs more coverage, please reach out to your account manager.
Suppose you raise a $30M fund that you expect to deploy over 3 years. You plan to do quarterly capital calls. This means that you will call $2.5M in capital each quarter.
AngelList will automatically spread each $2.5M capital call across accounts at 10 partner banks to ensure the entire amount is eligible for FDIC insurance.
Deposits in a sweep account program are liquid and are generally available within one day.
While our sweep program aims for complete FDIC coverage, we cannot guarantee that all funds will be fully covered at all times. For example, your deposits may not have 100% FDIC coverage while they are being moved for investment or other purposes or while new banking partners are being added. We expect that FDIC coverage will increase as we add additional banking partners in the coming days.
FDIC insurance will protect your deposits at that bank up to the $250K limit. The failure of one bank in the network will not impact your deposits or FDIC coverage at any other bank. If any bank in the sweep account program fails, you may experience a short delay in accessing deposits held at that particular bank due to FDIC procedures, but your deposits at other banks will be unaffected.