Startups Seeking More FDIC Coverage Flock to JPMorgan Chase, Mercury Bank, Brex and First Republic Bank

Kruze Consulting advises startup founders on cash management and finding the best FDIC insurance banks can offer

SAN FRANCISCO, April 5, 2023 /PRNewswire/ — Kruze Consulting, a leading CPA and finance consulting company for VC-backed startups, has released an overview of FDIC insurance and how to handle cash reserves and revealed where startup money is flowing in the wake of the SVB implosion. A number of banks and fintech companies offer products that might provide greater FDIC insurance coverage that exceeds the standard $250,000 amount.

Startup companies now have, on average, more than $5.5 million in cash – up from just over $3 million in early 2019, but down from their peak of $6.5 million in early 2022. And with the median startup having over 10 months in runway, meaning that they do not have immediate need for their cash, they need to find safe places to store it. Keeping care of the cash over the FDIC’s insurance limit of $250,000 is critically important.

In the wake of the Silicon Valley Bank crisis, Kruze Consulting has compiled a list of financial institutions that have developed products that can help startups manage their risk and protect their capital. Kruze has also created a list of the best banks for startups to take their deposits to as this crisis continues to get resolved. This lists compares the different types of products and the different amounts of protection those products offer. Additionally, Kruze has created a checklist on opening a new bank account, which helps provide tactical advice on how to set up a new account.

“Companies that have raised millions of dollars in VC funding should consider all cash management options available to them as FDIC insurance doesn’t get close to covering all of their capital. Most banks offer money market funds, Insured Cash Sweep accounts, and bond ladders. While these alternatives are not guaranteed like deposited funds, the reality is that many of these funds are huge, some with over a trillion dollars under management.” Scott Orn, COO at Kruze Consulting

As founders endure the unforeseen outcomes from the 16th largest bank in the US failing it is a relief the government took control of this situation before it got worse. When startups make the transition to new financial institutions it is important they seek those that provide the best ways to protect and help manage their cash.

About Kruze Consulting
Kruze provides Startup CFO Consulting to over 750+ startups in Silicon Valley, Los Angeles, New York, and other major startup hubs. To date, Kruze’s clients have raised over $12 billion in venture capital and are market-leading Saas, software, eCommerce, eHealth and FinTech startups. Founded in 2012 by Vanessa Kruze, a Big Four alum, startup controller and CPA, the firm handles all things accounting, tax, finance, and HR. Everything including interim CFO Consulting, financial modeling, startup tax returns, venture debt consulting, 409A valuations, bookkeeping, AR/AP, and Seed/Series A/B Fundraising Preparation can be seamlessly handled by the professionals at Kruze. Visit to learn more.

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SOURCE Kruze Consulting