Investing Banking Terms

The following Investing Banking Terms (these “Investing Banking Terms”) modify and supplement our General Terms and Investing Platform Service Terms , the terms and conditions of which are hereby expressly incorporated by reference, and together with the General Terms and the Investing Platform Service Terms, collectively governs your access and use of our Investing Platform Service, AngelList Networked Banking and/or AngelList Treasury. Capitalized terms used in these Investing Banking Terms, but not defined herein have the meanings given to such terms in the General Terms or Investing Platform Service Terms, as applicable. In the event of any conflict or inconsistency between these Investing Banking Terms and the General Terms or the Investing Platform Service Terms, the applicable terms of these Investing Banking Terms will control with respect to your use of the Investing Banking Service (defined below), AngelList Networked Banking and/or AngelList Treasury.

About

Users may be required to open a bank account or brokerage account with a bank, broker-dealer or other reputable financial institution, as described more in detail below, to utilize the Investing Platform Service, AngelList Networked Banking and/or AngelList Treasury.

Investing Platform Bank Disclosures and End User Agreements

“Investing Banking Services” are the services provided to you by an Investing Platform Bank (as defined below) and, as applicable, us as a partner of such Investing Platform Bank. By using the Investing Banking Services, you acknowledge the following: AngelList is a financial technology company and is not a bank. By using the Investing Platform Service, you agree to open bank accounts with one or more of the banks listed below and/or another reputable bank or financial institution as determined by AngelList or an affiliate from time to time with no additional notice to you (an “Investing Platform Bank”) as may be required to facilitate your Investing Banking Service activity (each, an “operating Bank account”):

Fifth Third Bank, National Association, Member Federal Deposit Insurance Corporation (“FDIC”), and transactions will be processed through an FBO account for your benefit.
Grasshopper Bank (“Grasshopper”), N.A., Member FDIC, and transactions will be processed through an FBO account for your benefit.
Piermont Bank, Member FDIC, and transactions will be processed through an FBO account for your benefit.

The FDIC insures each depositor up to $250,000, based on deposit insurance rules. FDIC insurance is not provided until the funds arrive at the Investing Platform Bank.

In addition, by using the Investing Banking Services offered by each Investing Platform Bank you, and each person you allow to access the Investing Banking Services through your Account, agree to the terms of the agreements with each of the applicable Investing Platform Banks, and us as an Investing Platform Bank partner, as applicable, which constitutes a binding agreement between you and the applicable Investing Platform Bank and are available at:

To the extent we change providers of your required operating Bank account, you consent to the transfer of your assets to another Investing Platform Bank. Your use of the Investing Platform Service following the date on which such change is made constitutes your consent to and acceptance of such change. We will provide you with notice of the updated Investing Banking Terms by posting the updated Investing Banking Terms on this page, and the Investing Banking Terms will be effective upon the Effective Date indicated below.

AngelList’s Networked Banking and AngelList Treasury

One or more of the features listed below is provided via AngelList Networked Banking (“Networked Banking”) and/or AngelList Treasury:

Sweep Account Program

The sweep account program (“Sweep Program”) automatically distributes deposits across a network of other FDIC insured partner banks, providing added FDIC insurance coverage for each additional account opened at a partner bank.

AngelList is a financial technology company and is not a bank. By using the Sweep Program, you agree to open bank accounts with one or more of the banks listed below and/or another reputable bank or financial institution (a “Sweep Bank”) as determined by AngelList or an affiliate from time to time, with no additional notice to you, as may be required to facilitate your use of the Sweep Program:

Grasshopper Bank, N.A., Member FDIC. Grasshopper Bank works with third-party agents and vendors American Deposit Management, LLC and its wholly owned subsidiary ADM Consulting, LLC and IntraFi Network LLC to distribute your deposits across a network of FDIC-insured banks, for up to the current Standard Maximum Deposit Insurance Amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions in Grasshopper Bank’s ICS Deposit Placement Agreements.
Piermont Bank, Member FDIC. Piermont Bank works with third-party agent and vendor IntraFi Network LLC to distribute your deposits across a network of FDIC-insured banks, for up to the current Standard Maximum Deposit Insurance Amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions in Piermont Bank’s ICS Deposit Placement Agreements.

Money Market Funds (powered by Frec)

By using the money market fund (“MMF”) feature of Networked Banking and/or AngelList Treasury, you agree to open brokerage accounts with Frec Securities, LLC and Apex Clearing Corporation, each a registered broker-dealer and member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”), according to their terms and conditions, for the sole purpose of purchasing and selling money market fund shares. Neither a brokerage account nor investments in money market funds are FDIC insured You can lose money investing in money market funds. Please read the prospectus for any money market fund carefully. AngelList is not a sponsor of any money market funds.

Capital Call Lines of Credit

In order to use the capital call line of credit (“CCLoC”) service, you, as the borrower or person authorized to act on behalf of the borrower (“Borrower”), agree to open a line of credit with one or more of the banks listed below and/or another reputable bank or financial institution as determined by AngelList or an affiliate from time to time with no additional notice to you as Borrower (a “Letter of Credit Bank”) as may be required to facilitate your CCLoC activity:

Piermont Bank, Member FDIC.

AngelList is not a bank or lender. The CCLoC is offered through the Letter of Credit Bank. Although the Loan and Security Agreement to be entered into between you, as the Borrower, and the Letter of Credit Bank (the “Loan Agreement”) and other agreements entered into in connection with the Loan Agreements (together with the Loan Agreement, the “Loan Documents”) are provided to you, the Borrower, by us through our Site or otherwise, such Loan Documents are being provided to you on behalf of the Letter of Credit Bank. All determinations of whether to lend to you are solely determinations made by the Letter of Credit Bank.

If you breach or are in default under any agreement related to the CCLoC, including the Loan and Security Agreement between you and the Letter of Credit Bank, we will consider it a violation of our Terms and may terminate your access to the Site and the CCLoC service without notice and may pursue other remedies at law or in equity. We may also delete your Account. See Section VII. Company Rights in our General Terms for more information about our rights.

GSIB Partnership Vault Accounts

Funds can store long-term capital with a Vault account at a global systemically important bank (“GSIB”). AngelList is a financial technology company and is not a bank. By using a Vault account, you agree to open bank accounts with one or more GSIBs as determined by AngelList or an affiliate from time to time (a “Vault Bank”), with no additional notice to you, as may be required to facilitate your use of the Vault account.

Conditions to Access MMFs and GSIB Vault Account Features of AngelList Treasury

If you subscribe for AngelList Treasury, AngelList reserves the right to make the MMF and GSIB Vault Bank features available to you only if your operating Bank account holds at least $100,000 (“Condition”). AngelList will determine, in its sole and absolute discretion, whether you have met this Condition by determining the number of days in each month where: (1) your end-of-day balance in your operating Bank account is less than $100,000 and (2) the sum of your end-of-day balances in your GSIB Vault Bank accounts and MMF accounts is positive. If the number of such days is greater than or equal to 15, AngelList will determine that you have not met the Condition and AngelList reserves the right, in its sole and absolute discretion, to either (i) charge you a $500 fee for each such month or (ii) move funds from your MMF accounts and/or GSIB Vault Bank accounts into your operating Bank account. The foregoing is subject to change at any time and without notice.

Limited Power of Attorney (POA)

In connection with your use of Networked Banking and/or AngelList Treasury, you, and each person you allow to access the foregoing through your Account, agree to the terms of the Limited Power of Attorney below:

As the general partner (the “General Partner”) of the venture fund (the “Fund”) which is signing up or subscribing for one or more of the products and/or services comprising AngelList Treasury and/or AngelList Networked Banking, the General Partner, on behalf of the Fund, does, via this Power of Attorney, hereby constitute and appoint AngelList, with full power of substitution, as the General Partner’s true and lawful attorney in-fact with full power and authority as hereinafter described, in connection with AngelList Treasury and/or AngelList Networked Banking, to: (i) cause the movements of money (including but not limited to via wires and ACH transfers) to and from the Fund’s custodial accounts, deposit accounts, escrow accounts, sweep accounts and/or brokerage accounts maintained at and owned by a reputable bank, broker-dealer or financial institution (the “Financial Service Providers”) as determined by AngelList from time to time (the “Financial Accounts”), including but not limited to the purpose of meeting any Financial Account balances required by AngelList to be eligible to access the Money Market Fund and Vault features of AngelList Treasury; (ii) to change the Financial Service Providers in AngelList Treasury and/or AngelList Networked Banking without notice to you, and to transfer the Fund’s assets between Financial Service Providers; (iii) enter into line of credit agreements offered via AngelList Treasury and/or AngelList Networked Banking; (iv) do and perform any and all acts for and on behalf of the General Partner which may be necessary or desirable to complete and execute any of (i) through (iii) above, including but not limited to, to complete and/or execute any documents (or amendments) necessary thereto, and timely file any such documents (or amendments) necessary thereto, with the Financial Service Providers, federal governmental or administrative bodies, governmental or administrative bodies of any state, the District of Columbia, or their designees and any similar authority; and (v) take any other action of any type whatsoever in connection with the foregoing which, in the opinion of such attorney-in-fact, may be of benefit to, in the best interest of, or legally required by, the General Partner, it being understood that the documents executed by such attorney-in-fact on behalf of the undersigned pursuant to this Power of Attorney shall be in such form and shall contain such terms and conditions as such attorney-in-fact may approve in such attorney-in-fact’s discretion. This Power of Attorney and all authority conferred hereby shall remain in full force and effect until the termination of the Fund’s use of AngelList Treasury and/or AngelList Networked Banking. The General Partner warrants and represents that: the execution, delivery and performance by the General Partner of this Power of Attorney has been duly and validly authorized by all necessary actions required of the General Partner, on behalf of the Fund; and that this Power of Attorney executed and delivered by General Partner, on behalf of the Fund, constitutes, the legal, valid and binding obligation of the General Partner, enforceable against the General Partner or the Fund, as applicable, in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity). This Power of Attorney shall inure to the benefit of and be binding upon the transferees, successors, assigns, and legal representatives of the General Partner and AngelList.

The General Partner and the Fund shall each defend, indemnify and hold harmless AngelList, and any manager, officer, director, shareholder, partner, member, employee or manager of AngelList, made, or threatened to be made, a party to any action or proceeding, whether civil, criminal or investigative (each, a “Proceeding”), from and against all judgments, fines, amounts paid in settlement and reasonable expenses (including investigation, accounting and attorneys’ fees) incurred as a result of such Proceeding, or any appeal therein (and including indemnification against active or passive negligence, claims regarding actions undertaken as agent of the General Partner and/or the Fund, or breach of duty) arising out of or resulting from the General Partner’s breach or alleged breach of any representation, warranty or obligation set forth in this Power of Attorney. These indemnification obligations hereunder shall survive the termination of the General Partner or the Fund.

Account Referral Income from Banks. No Interest on Bank Balances.

AngelList and/or its affiliates receives referral income from one or more of the Investing Platform Banks and/or Sweep Banks (together, the “Banks”) based on the amount you deposit with such a Bank via the Investing Banking Services, Networked Banking and/or AngelList Treasury. Further, you acknowledge that you will not earn any interest, fees, or other remuneration based on balances held in your account at a Bank, via the Investing Banking Services, Networked Banking and/or AngelList Treasury. You may, however, earn a yield by investing in a MMF offered through Networked Banking and/or AngelList Treasury.

Fees

Networked Banking. There is no fee to use Networked Banking. If you have over $1,000,000 in deposits across accounts at the end of the previous day, AngelList will cover the cost of up to 10 free wires the next day. Otherwise, wire fees will be passed through to you at cost ($12 per outbound wire as of the effective date of these Investing Banking Terms).

AngelList Treasury.

Subscription Price. If you subscribe for AngelList Treasury, you will be charged the standard subscription price upfront, currently $5,000 every 12 months, but subject to change. If you are an Institutional Fund Full Service customer of AngelList, you will also be charged an additional add-on fee of $5,000 every 12 months to cover the additional tax, legal, compliance and accounting services that AngelList will provide you as part of the AngelList Treasury services. Your subscription will automatically renew for the next 12 month period at the then current subscription price unless you cancel before your current 12 month subscription period ends. Once you have been charged, you will not be able to get a refund on any amounts paid, including if you cancel your subscription before the 12 month subscription period terminates. If you violate our Terms, we may terminate your access to AngelList Treasury and/or all or portions of AngelList’s site without notice and may pursue other remedies at law or in equity. We may also delete your Account.

Please see below for additional fees you will be charged by third parties for your use of the Money Market Funds and/or the Capital Call Lines of Credit features.

Money Market Funds. Apex Clearing Corporation and/or Frec Securities, LLC will charge you additional service fees that are disclosed in the fee schedule included in account opening documentation. Any of these fees can be changed at any time and without notice.

Capital Call Lines of Credit. The Line of Credit Banks will require payment for the following for capital call lines of credit offered via AngelList Treasury:

An annual fee (payable quarterly)
Good faith deposit
Closing costs
Interest at an annual percentage rate to be determined solely by the Line of Credit Bank, and subject to change
Default interest, where applicable
Late charges, where applicable

The exact amount of the above interest, fees, and other fees not included above, as well as payment terms, will be disclosed in the Loan and Security Agreement between you and the Line of Credit Bank and any additional documents the Line of Credit Bank may require. You should consult that Loan and Security Agreement and any such additional documents for the specific amounts and terms and conditions of all fees. All determinations of the interest rate, fees, and other fees not included above, are solely determinations made by the Letter of Credit Bank, and subject to change.

Prohibited Businesses and Countries

In order to use any of the features of AngelList Treasury, you agree to the below. You agree to stop using AngelList Treasury and notify us immediately if you can no longer agree to any of the below.

Prohibited Businesses. You will not use AngelList Treasury to facilitate transactions with respect to the categories of companies listed below:

Unlawful Internet Gaming Companies
International Arms Dealers
Payable-Through Accounts (PTA - pass through accounts)
OFAC SDN List
Adult Entertainment Business
Casino or Card Club
Gambling, including internet gambling, as well as gaming, betting
Pawnbrokers
Payday lenders
Substances designed to mimic illegal drugs
Shell companies (includes international business corporation (IBC) and private investment companies (PIC)
Shell banks

Prohibited Countries. You will not use AngelList Treasury to facilitate transactions with a company or person resident in any of the countries listed below:

Afghanistan
Belarus
Burundi
Central African Republic
Congo (Kinshasa)
Cuba
Iran, Islamic Republic of
Iraq
Korea (North)
Lebanon
Libya
Nicaragua
Russian Federation
Serbia
Somalia
South Sudan
Sudan
Syrian Arab Republic (Syria)
Venezuela (Bolivarian Republic)
Yemen
Zimbabwe

Effective Date

These Investing Banking Terms were last updated on July 7, 2023.

How to Contact Us

If you have any questions about these Investing Banking Terms, please contact us at [email protected].

AngelList is not a bank nor a lender and is not a member of the FDIC. All banking and lending services are provided through third-party banks. AngelList does not guarantee that every dollar held by a fund in a bank on the AngelList platform will have complete FDIC insurance coverage and AngelList does not provide any insurance on capital held. Any insurance coverage on bank accounts is provided by the FDIC through third-party banking partners. Any and all underwriting, approval and pricing decisions for CCLoCs are made by the Letter of Credit Banks and not AngelList.

Capital in a money market fund (MMF) is not eligible for FDIC insurance and is subject to a risk of loss. MMFs are not bank deposits. MMFs are investment products. There may be a delay in the ability to deploy capital invested into the MMF. Although the MMF seeks to preserve the value of your investment at $1.00 per share, that is not guaranteed. You could lose money by investing in the MMF. For more information on any MMF, please review the fund’s prospectus. Brokerage services provided by Frec Securities LLC, member FINRA/SIPC, not affiliated with AngelList. AngelList is not a sponsor of any MMFs.

Nothing in the above shall be construed as investment advice or financial advice of any kind.

Features of the Investing Banking Service, Networked Banking and/or AngelList Treasury disclosed here are subject to change as we work to continually improve these products.