The banking network for venture funds
AngelList’s networked banking provides increased customer access to FDIC insurance and mitigates single-bank risk through sweep accounts and banking vaults.
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 your fund.
Accounts are dynamically created as your fund size grows, with vault storage options for larger funds.
Vault accounts
backed by the largest banking institutions
Vault accounts allow larger funds to store long-term capital in external accounts with major GSIB banks. Vault accounts connect with the FDIC-insured cash sweep program and other AngelList tools to allow for easy deployment of capital.
Funds under $30M
Deposits for all funds are distributed across our network of partner banks within a sweep account, maximizing FDIC insurance coverage.
Funds over $30M
Sweep accounts and banking vaults serve larger funds with more complex cash management strategies.
Networked banking sweep accounts
maximize FDIC protection for all funds
What are sweep accounts?
A core networked banking feature is a sweep account program created in partnership with multiple banks.
Sweep accounts provide a way to automatically spread deposits across a network of banks, providing up to $250K additional FDIC insurance at each bank.
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.
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 $5.25M 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.
Vault accounts allow eligible fund managers (funds with over $30M in committed capital) to store excess capital in a globally systemic important bank (GSIB) account for longer term capital storage. Excess capital is any investable capital that does not need to be deployed for 3+ months.
For more information on Vault accounts, please reach out to your account manager.
Funds with over $30M in committed capital are eligible to connect a Vault account.
Vault accounts are eligible for up to $250K in FDIC insurance per account. For FDIC optimization, AngelList Networked Banking offers sweep accounts.