Networked Banking
AngelList’s Networked Banking allows eligible funds access to seamless account creation and enhanced FDIC coverage up to $125M to mitigate single-bank risk, and optimize day-to-day operational simplicity.
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. Sweep programs allocate 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. 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.
A reliable, secure, and scalable banking network
Rapid account creation
Open an operating account in under 2 minutes on our sweep network of 500+ banks.
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 partner banks' sweep account programs.
– Automate bank redundancy
– Reduce admin overhead
– Simplify capital deployment
– Maximize deposit protection
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.
Networked Banking sweep accounts with AngelList's partner banks are used by thousands of funds to maximize protection for deposits
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 that eligible 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 infrastructure 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 with AngelList's partner banks made through the Networked Banking infrastructure 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 entitled to up to $250K in FDIC insurance coverage, deposits with AngelList's partner banks for eligible customers electing to access the Networked Banking infrastructure can receive additional FDIC coverage.
Yes, subject to the program’s eligibility criteria, you can elect to access Networked Banking for a subscription price of $5,000/year. If you have additional questions please reach out to your account manager.
Eligibility for the Networked Banking sweep program is based on the type of account you hold. Currently, the following account types are not eligible for participation in the Networked Banking sweep program:
- Accounts for "syndicates"
- Accounts for “Roll Up Vehicles” (RUVs)
- Accounts for investors
If you have questions regarding your account’s eligibility for the Networked Banking sweep program, please contact your account manager.
AngelList charges a subscription fee of $5,000 per year for customers that have elected to access the Networked Banking Sweep Program after August 1, 2024. Existing Venture Funds and Rolling Funds enrolled in Networked Banking prior to August 1, 2024 may remain enrolled at no cost, and with no additional action required. “Crypto” and “Cannabis” Venture Funds and Rolling Funds enrolled in Networked Banking prior to August 1, 2024 may also subscribe to Networked Banking at no cost but must actively re-enroll by contacting their 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.
Non-US domiciled entities are evaluated case-by-case by our banking partners. Please email treasury@angellist.com for more.