Networked Banking
AngelList’s Networked Banking is designed specifically for the needs of venture funds with seamless account creation, enhanced FDIC coverage up to $125M, mitigation of single-bank risk, and day-to-day operational simplicity.
Rapid account creation
Open an operating account in under 2 minutes on our sweep network of 500+ banks, for enhanced FDIC coverage.
Wire transactions
Directly send, receive, review, and approve wires - across all accounts for all funds with custom approval workflows.
Robust controls and security
Only specified team members can access, manage, and deploy funds. Complete with 2FA and SOC2 certification.
The banking network for venture funds
AngelList’s Networked Banking provides venture funds a networked approach to banking through our sweep account program.
– Automate bank redundancy
– Reduce admin overhead
– Simplify capital deployment
– Maximize FDIC coverage
Empowering funds utilizing our full-service offering or opting for another back office provider.
*For existing AngelList customers, reach out to your account manager to learn more about how we leverage Networked Banking for our full-service clients.
Networked Banking sweep accounts are used by thousands of funds to maximize FDIC coverage
AngelList’s banking infrastructure
AngelList has helped VCs manage their capital for over eight years. Through our infrastructure, thousands of funds have successfully moved over $58B on our ledger, facilitated more than 175,000 distributions, and initiated over 670,000 capital calls to investors.
Networked Banking ensures all funds—whether utilizing our full service offering or another back office provider—can easily create multiple accounts for multiple funds, and seamlessly manage all accounts from a single dashboard.
How does AngelList’s sweep account program work?
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.
AngelList’s banking partners work with companies to distribute deposits across a network of banks. 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.
Looking for centralized capital management?
AngelList Treasury offers a unified dashboard including Networked Banking, programmatic access to GSIB account creation, IRR optimization via MMFs and credit lines, streamlined operations, and more for all your funds and accounts.
FAQ
Everything you
need to know
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 eligibility at each bank.
Deposits at a single bank are eligible for only $250K in FDIC insurance coverage. This limit exposes depositors in excess of $250K to risk in the event of a bank failure.
AngelList’s banking partners work with companies to distribute deposits across a network of banks. These programs automatically create new accounts in your fund’s name at each partner bank. Because each account is eligible for up to $250K in FDIC insurance coverage, deposits made through AngelList’s networked banking can receive additional FDIC coverage.
Yes. We use the Networked Banking infrastructure to power all the bank accounts for our Full Service Fund Management customers. If you have additional questions please reach out to your account manager.
We have robust permissions, with separate roles for creation and approval of wires. International and domestic wires, in USD and foreign currencies are supported.
Deposits in a sweep account program are liquid and are generally available within one day.
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.
There is no fee to use Networked Banking. If you have at least $1M in deposits across accounts at the end of the previous day, you will have up to 10 free wires the next day. Otherwise, wire fees will be passed through to you at cost
Non-US domiciled entities are evaluated case-by-case by our banking partners. Please email treasury@angellist.com for more.