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Best Banks for Funded Startups

How to choose the right bank for your startup in 2026

A venture-backed startup should bank differently than a small business. Across Kruze’s client base, most funded startups now use two banks: one nimble operating account and a second, larger institution for safety and extended FDIC coverage. By market share, JPMorgan Chase, Mercury, and Brex lead among the startups we work with, with SVB now operating as part of First Citizens. Below is how to choose, how many accounts you need by stage, and a side-by-side of the institutions we see most.

The startup banking landscape has stabilized since the 2023 failures. Today, JP Morgan Chase leads our startup clients in market share, followed by SVB (now part of First Citizens) and Mercury. Other players we list below have good offerings and are good fits for some VC-backed startups as well.

by
Sary Hijazi, MBA Kruze Consulting

Sary Hijazi, MBA

Director of Onboarding at Kruze Consulting

Last updated:
Published:

What’s new in startup banking in 2026

The early-stage finance world changed with the failure of Silicon Valley Bank, FRB and several other startup-focused banks. Where founders kept their businesses’ money suddenly mattered, and our team fielded over 100 calls from panicked founders worried about their companies’ checking accounts.

Founders are now more focused than ever on safety, ease of use and the features that founders actually want: low fees, great UX, easy cash management and more.

How to choose the right bank for your startup

As a founder, you want to ensure your funds are safe and accessible. Some of the qualities we recommend looking for in a financial institution include:

  • Safe and well-capitalized
  • Strong online banking with solid user interface
  • Good customer service 
  • Low to no fee banking
  • Understands startup finances and the tech market
  • Integration with popular business software like QuickBooks
  • Protection for your operating funds, such as insured sweep accounts that extend FDIC insurance
  • Cash management investment products, like access to short-term government mutual funds
  • Full range of tech focused products like startup specific credit cards, venture debt, and a VC relationship team 

That’s a lot to expect from any financial institution, which is one reason startup founders and CEOs are reallocating funds to a second bank.

So your primary operating account might be with a startup-friendly institution with an excellent online interface, and your secondary institution might offer other advantages, like a strong cash management program.

Some of our executives have investments in companies in this space, including ones we talk about here, and when you use our links you may get better pricing, and we may get referral payments.

Best Banks for Startups

Here’s our breakdown of many of the institutions we regularly work with.

Click on the logo to add or remove providers from the comparison chart.

Arc Banc of California Bank of America Brex California Bank of Commerce Citizens Bank HSBC JP Morgan Chase Meow Mercury Rho SVB / First Citizens Treasure Financial
Online interface Good Fair Fair Good Good Good Good Fair Great Great Great Good Good
Branch offices No Yes Yes No Yes Yes Yes Yes No No No Yes No
Customer service Phone, Email Phone, Email, Online Phone, Email Email, Live Chat Phone, Email Phone Phone, Email, Online, Live Chat Phone, Email, Online Live Chat Email, Online Email, Online Phone, Email, Online Email, Live Chat
QBO integration Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Loans or lines of credit Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Not sure
Extended FDIC protection Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes
Cash management services/products Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

When should a founder open a bank account for their startup?

Every startup founder must decide early in the company’s existence when to open a business bank account. You really need to do this as you are getting funded; you should not wire investor money for your startup into a personal bank account. Going forward, after you are funded, all company expenses flow through business accounts, and no personal expenses go through the business. Kruze’s founder, Vanessa Kruze, CPA, breaks down when to open a bank account for your startup:

At what point should you create a company bank account and start with quickbooks/accountant for your startup?

More detailed question from a founder:

“Using personal savings and CCs to pay for services now. Will Inc. (c corp) soon but don’t plan to monetize right away,or only get a little $ in early on. At what point should I create a company account and put some of my savings in, start using QuickBooks, talk to an accountant? Right after I inc.?”

Vanessa’s response:

Incorporate as soon as you start spending a material amount of money on the idea, begin signing legal agreements, and before you start hiring contractors or employees. Get yourself protected legally.

If you are going to raise real Angel and VC capital, then incorporate as a Delaware C Corp. VCs can’t invest in LLCs and S Corps, so if you go that direction you will need to reincorporate later. Btw, LLC and S corp structures are great if it’s a family owned business and you will not be raising VC capital. In fact we are an S Corp.

Once incorporated, you can get a separate bank account. If you raise any funding at all, even pre-seed funding, get a business bank account for the company. Do that immediately. You want to clearly document all spend on the new business. And make sure you get a bank that knows startups, not some random regional bank or mega-bank. Very few banks understand VC-backed businesses. (Read our tips on how to read a bank statement.) This matters for a few reasons. 1. Most small business-focused banks don’t “get” the fact that tech startups burn cash. You don’t want them putting you on some internal watch list because they think you are going out of business. 2. The right bankers are very connected to venture capitalists and can make introductions to potential investors.

When you have the bank account, use only that account for the business. Do not mix personal and business anymore. Founder to Business payments are something the IRS focuses on in an audit. So do it right.

When you’ve raised some money, you can get a real startup corporate card. Look for a card that does not put personal liability on the founders. Also look for cards that “get” startups. We are currently recommending Brex as the best credit card for startups.

Once all the spend is segregated, you can wait a bit before doing QuickBooks. However, if you want more granularity and/or you have investors, then use QuickBooks. This is probably the time to hire a startup accountant like us.

We encourage companies to raise about a quarter of a million in pre-seed, seed, or venture funding before working with us because anything less means you are on a really tight budget and that capital could be better used for achieving product-market fit. We can always go back and clean up compliance and accounting, but you don’t always get a second chance at traction.

How many banks should a startup use?

Most VC-backed startups we work with now have two banks. After the SVB crisis, the median number of banks our clients work with went to two from one, and we are seeing VC term sheets that request that the startup use two accounts.

This is a big change from what we saw prior to the startup banking crisis. Founders used to pick a bank, and then basically forget about it until they were big enough to need a treasury function to manage the millions of VC dollars they had raised.

Why have multiple banks?

Having accounts at multiple banks gives startups a critical backup if their primary bank fails. The SVB crisis made this painfully clear. Founders who hadn’t set up a second account in advance couldn’t move money out fast enough before the FDIC stepped in and froze their funds.

Secondly, having an additional bank means that a startup can get double the FDIC coverage limit of $250,000. In a perfect world, it’s not a bad idea to park at least one month of payroll in a second financial institution, so if another financial crisis occurs, you’ve got enough cash to pay your employees for the coming month.

Third, many of the supposedly safest banks like JP Morgan or Wells Fargo don’t have the best banking interface or infrastructure for startups. So having an operating account with a more nimble bank, and then a safety account with a too-big-to-fail bank makes a lot of sense.

Of course, startups with only a little cash may not have enough to effectively have two financial institutions.

Why have multiple accounts?

As the startup grows, one bank account is rarely enough. Separating funds across multiple business accounts can help founders understand the company’s finances more easily and help them make better decisions. Important reasons for having multiple accounts include:

  • Operational segmentation. Keeping funds in different accounts makes it easy to grasp a business’s financial status. This kind of clarity is important when you’re calculating the amount of runway you have or deciding when to fundraise.
  • Tax preparation. In addition to having an account for sales tax collection, many startups have an account for income taxes, making it easy to set funds aside to pay quarterly or annual tax bills.
  • Managing expenses. Having an account dedicated to specific expenses makes it easier to monitor and track spending.
  • Security. Putting funds in different accounts for different purposes minimizes the risk of fraudulent transactions, since no single account has access to all of the company’s funds.

In addition to having multiple accounts, tech startups should consider having multiple banks. As the bank failures in 2023 illustrated, it’s a good idea to allocate your funds to more than one bank for several reasons:

  • FDIC insurance. FDIC insurance only covers $250,000 per depositor, per account type, per bank. Insured sweep accounts can spread your funds across a network of FDIC-insured banks in increments of $250,000.
  • Business continuity. Holding funds in a second institution helps ensure that if your primary bank faces issues, you can access and move funds from another bank.
  • Income maximization. A startup should keep approximately 12 months of runway in highly liquid accounts, but if your company has more cash on hand, you may want to consider placing the funds in accounts that generate higher yield.

Creating your banking stack

There are no hard or fast rules around how many accounts a startup should have, but there are some general guidelines you can follow. As your company grows, you’ll need more bank accounts, and startups in different industries need different types. With that in mind, we’ve created a tool to give you an idea of what bank accounts your startup may need.

Tech startup bank market share

Banking Market Share - Deposit Market Share

Banking Market Share - Deposit Market Share

Updated Market Share Analysis: Post-SVB Landscape

The SVB collapse completely rewrote the tech banking landscape. Our in-depth analysis reveals notable shifts in where VC-backed startups are now banking. Utilizing anonymized balance sheet data from approximately 400 Kruze Consulting clients, holding around $4 billion in cash and equivalents, we’ve scrutinized banking trends pre-crisis, during, and post-crisis. We believe that this is the largest study of its kind, and our data has been cited everywhere from The New York Times, CNBC, Bloomberg, The Information, TechCrunch, Pitchbook and more.

Key Findings and Bank Performance Overview

  • Diversification of Banking Relationships: Startups have increased their banking relationships from an average of one to two banks, enhancing financial security and agility.
  • Shift in Average Deposits: The average balance per bank account has decreased from $7.2 million to $5.2 million, underscoring the trend towards diversification.
  • Dominant Players Emerge: JPMorgan Chase, Mercury, and Brex have emerged as the preferred banking partners for early-stage startups. While SVB still has market share, this is more a legacy of existing clients vs. newly won business.

In-Depth Startup Bank Analysis

  • SVB: Post-crisis, SVB saw a stark reduction in its startup clientele and deposit market, as startups switched deposits away and newly incorporated startups chose other banks.
  • JPM: JPM emerged as a significant winner, attracting a large share of startups with its rapid onboarding and strong tech industry reputation.
  • Mercury: Demonstrated substantial growth in both customer base and deposit share, benefiting from easy account opening and robust fintech integration.
  • Brex: Saw increased adoption among startups, leveraging existing relationships through its corporate card services to offer banking solutions.
  • Other Players: Other players have added experienced bankers after the exodus from SVB and FRB, and while they are slowly gaining deposits, none have broken out yet.
  • Venture Debt as a Competitive Edge: Banks categorized under “Other” have utilized venture debt offerings to attract startups.
  • Technology and Accessibility: Startups prefer financial partners that offer modern, accessible banking solutions.
  • Market Share Dynamics: The landscape for startup banking is increasingly competitive, with financial institutions needing to adapt rapidly to the evolving needs of the startup ecosystem.

Newer players like HSBC and others have poached experienced tech bankers from SVB and FRB, and we expect them to come out with products and solutions that will be great for founders. However, one critical item is that they have a legacy technology stack that will make it challenging for founders (and their accountants) to do business with them. In particular, they need accounts that allow easy and safe remote access with correctly provisioned settings.

Most startups now have more than one bank account. Our median client has two banks, up from just one in early 2023. This has also driven down the average bank account balance.

Setting up your banking stack? That’s the same moment you need your books set up to match. Kruze connects your accounting to whichever banks you choose, with QuickBooks integrations, cash-management reporting, and the runway visibility investors expect. See our startup accounting services and transparent pricing.

How many bank accounts do you need?

As your startup grows, you’ll need additional bank accounts to more effectively manage your funds. This tool can help give you an idea of the number of accounts you may need based on the amount of funding your startup has, and the industry you’re in.

Step 1. Select industry
Step 2. Select amount of cash in bank

If you have a BioTech/Pharma startup with Up to $250k funding, you may need this bank account:

  • Business checking account

If you have a BioTech/Pharma startup with $250k - $1M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account

If you have a BioTech/Pharma startup with $1 M - $10 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account

If you have a BioTech/Pharma startup with $10 M - $30 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Investment account(s)

If you have a BioTech/Pharma startup with $30 M - $50 M funding, you may need these bank accounts:

  • Operations checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Investment account(s)

If you have a BioTech/Pharma startup with $50 M+ funding, you may need these bank accounts:

  • Operations checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Investment account(s)
  • Payroll checking account
  • Income tax account
  • Marketing account

If you have a Healthcare startup with Up to $250k funding, you may need this bank account:

  • Business checking account

If you have a Healthcare startup with $250k - $1M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account

If you have a Healthcare startup with $1 M - $10 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account

If you have a Healthcare startup with $10 M - $30 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Investment account(s)

If you have a Healthcare startup with $30 M - $50 M funding, you may need these bank accounts:

  • Operations checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Investment account(s)

If you have a Healthcare startup with $50 M+ funding, you may need these bank accounts:

  • Operations checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Investment account(s)
  • Payroll checking account
  • Income tax account
  • Marketing account

If you have a eCommerce startup with Up to $250k funding, you may need this bank account:

  • Business checking account

If you have a eCommerce startup with $250k - $1M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account

If you have a eCommerce startup with $1 M - $10 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account

If you have a eCommerce startup with $10 M - $30 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Investment account(s)

If you have a eCommerce startup with $30 M - $50 M funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Investment account(s)

If you have a eCommerce startup with $50 M+ funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Investment account(s)
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Marketing account

If you have a FinTech startup with Up to $250k funding, you may need this bank account:

  • Business checking account

If you have a FinTech startup with $250k - $1M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account

If you have a FinTech startup with $1 M - $10 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account

If you have a FinTech startup with $10 M - $30 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Investment account(s)

If you have a FinTech startup with $30 M - $50 M funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Investment account(s)

If you have a FinTech startup with $50 M+ funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Investment account(s)
  • Payroll checking account
  • Income tax account
  • Marketing account

If you have a Hardware startup with Up to $250k funding, you may need this bank account:

  • Business checking account

If you have a Hardware startup with $250k - $1M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account

If you have a Hardware startup with $1 M - $10 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account

If you have a Hardware startup with $10 M - $30 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Investment account(s)

If you have a Hardware startup with $30 M - $50 M funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Investment account(s)

If you have a Hardware startup with $50 M+ funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Investment account(s)
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Marketing account

If you have a SaaS startup with Up to $250k funding, you may need this bank account:

  • Business checking account

If you have a SaaS startup with $250k - $1M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account

If you have a SaaS startup with $1 M - $10 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account

If you have a SaaS startup with $10 M - $30 M funding, you may need these bank accounts:

  • Business checking account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Investment account(s)

If you have a SaaS startup with $30 M - $50 M funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Investment account(s)

If you have a SaaS startup with $50 M+ funding, you may need these bank accounts:

  • Operations checking account
  • Accounts payable account
  • Accounts receivable account
  • Sales tax account
  • Second bank account
  • Credit card account
  • Cash management account
  • Investment account(s)
  • Payroll checking account
  • Income tax account
  • Merchant services account
  • Marketing account

What bank accounts do you need?

There are numerous factors that you need to consider when you’re building your banking stack, including your runway, your burn rate, the flexibility you need from your bank, the safety of your funds, the type of accounts you need to serve your customers, and much more. But the biggest variable to consider is how much cash you have on hand.

The larger your cash reserve, the more complex your banking stack needs to be. These are just general guidelines; you should discuss your specific requirements with your accountant(s) and your bank representative.

$250,000 or under. Very lightly funded startups can probably just have one business checking account. Capital preservation shouldn’t be an issue, since FDIC insurance will cover up to $250,000.

$250,000-$1 million. At this point, you will probably need two accounts, a business checking account for operational expenses and a second account to hold additional funds. Consider setting up your second account at a different bank, which offers you greater FDIC protection and protects you if there are issues with your primary bank.

$1 million-$10 million. This level of funding is significant, and startups should add more options to their banking stack. A credit card account helps you manage expenses. You should also consider a cash management program for funds that exceed the amount you need for the next 12 months. At current short-term rates, idle cash in a cash-management program can earn a meaningful yield, so funds you won’t need for 12 months shouldn’t sit in a zero-interest checking account.

$20-$30 million. At this funding level, your startup probably has a significant number of employees, which means you may need to create a payroll account, an income tax account, and possibly a merchant services account.

$30-$40 million. Other accounts you may need include accounts receivable and accounts payable. Startups doing significant sales should consider a sales tax account, where you can place the sales taxes you’ve collected until you remit them to the proper taxing authorities.

$40-$50 million. You should make sure funds are invested across a range of low-risk options. You will want professional cash management, and you should set up an investment policy statement that’s approved by your board of directors.

$50 million+. You’ve reached the point where you probably need to set up separate operating accounts for different business functions, like marketing.

How are rising interest rates affecting startup banks?

Rising interest rates can affect startup bank deposits. Startups that have money in a bank account might earn more interest on their deposits, because banks generally pay higher interest rates on deposits when rates rise. However, if startups pull cash to move it into higher-yield investments, that reduces the bank’s deposit base. If a bank is locked into longer term assets like mortgages or longer duration T-Bills, it could face a liquidity crunch. This is partly what sparked the issue with SVB.

Ways you can extend your FDIC insurance for more safety

Before the SVB failure, most founders probably didn’t pay much attention to Federal Deposit Insurance Corporation (FDIC) insurance for their company bank accounts. Now founders are paying much more attention to where they’re placing their money and looking for safer ways to manage their cash.

FDIC insurance protects individual bank deposits up to $250,000. However, startups can have millions in venture capital, far exceeding the FDIC limit. Founders and CEOs need to focus on three tenets of cash management: safety, liquidity, and managing risk.

Many banks have developed Insured Cash Sweep (ICS) accounts that distribute your money across a network of FDIC-insured banks in increments of $250,000. Please note that while these accounts have been available for over 20 years, they’ve never been tested to see if the FDIC would completely reimburse losses.

Financial Institution Amount Insured Product Details
Banc of California $250,000,000 IntraFi Cash Service Spreads $ across many banks
Bank of America $6,000,000 Insured Savings Account Spreads $ across many banks
California Bank of Commerce $50,000,000 Demand Deposit Marketplace Spreads $ across many banks
Citizens Bank $130,000,000 Insured Deposit Spreads $ across many Banks
SVB $190,000,000 Insured Cash Sweep Spreads $ across many Banks
Arc $2,750,000 Arc Gold Spreads $ across many banks
Vesto $5,000,000 Sweep Spreads $ across many banks
Mercury $5,000,000 Mercury Vault Spreads $ across many banks
Rho $75,000,000 Treasury Management Account Spreads $ across many banks
Brex $6,000,000 Brex Business Account Spreads $ across many banks
Ramp $75,000,000 IntraFi Cash Service Spreads $ across many banks

Other low-risk options to manage bank cash with greater safety

Startups with cash balances that exceed their bank’s insured sweep limits may want to consider investing in short-term government debt. Companies can access short-term government bonds by purchasing them directly from the US Department of the Treasury, or by working with their financial providers to purchase bonds or invest in money market funds.

 

Money market funds invest in highly liquid short-term investments like US Treasuries. While not FDIC-insured, they are considered very low-risk and offer startups a high degree of safety for their funds.

Financial Institution Investment Product Additional Information
JP Morgan Asset Management Liquidity Funds Several money market funds focused on stability and liquidity
Bank of America Merrill Lynch Bank Deposit Program Offered through Merrill Lynch
Banc of California Cash & Treasury Management Money market accounts and fund sweeps
HSBC Treasury Solutions Group Fixed income products like US Treasuries and liquidity investment solutions
SVB SVB Asset Management Money market accounts and funds with insured cash sweep
Brex Money market funds Offered through BNY Mellon
Mercury Vanguard Fund Offered through Apex
Rho Prime Treasury Account Managed by RBB Treasury, LLC
Meow US Treasury Bills Offered through BNY Mellon Pershing
Vesto Money market funds or T-Bills Custodied at BNY Mellon Pershing
Treasure Financial Treasure Managed Income Actively managed money market fund
Arc Money market funds or T-Bills Offered through BNY Mellon Pershing
Ramp Ramp Treasury Offered through Apex Clearing

Why Do Banks Require Deposits From Startups?

As part of a loan agreement, many banks that lend to startups require the startups to keep a specified percentage of the loan in an account at the lending bank. There are two basic reasons:

  • Risk mitigation. If the funds are held with the lending bank, that bank can monitor how the cash is used, or even take the cash if the startup is doing poorly. It’s called the right of offset.
  • Making loans. Banks use funds on deposit with them to make other loans.

Deposit requirements are a standard part of loan agreements. While you can potentially negotiate the percentage of funds the bank requires for the deposit, you will need to keep funds in your lending bank.

Keeping Payroll at an “Escape Hatch” Bank

An “escape hatch” bank is a bank where startups are now keeping at least one payroll’s worth of cash. It’s separate from their primary bank, and it has a funded account that can be used in an emergency – and where funds can quickly be wired if needed.

This is a safeguard that comes as a direct response to the Silicon Valley Bank crisis which, as we know, really shook up a lot of companies. Now, as a precaution in case of another crash at a bank like SVB, startups are keeping at least one payroll run at a secondary or “escape hatch” bank.

Missing payroll would be a serious problem for any business

The SVB crisis is still fresh, and one of the worst things that came out of the crash was how payroll was almost missed for thousands of companies. If the government hadn’t stepped in the day they did, payroll would have been totally missed, leading to an HR crisis involving penalties, lawsuits, and a lot of damage.

So we are seeing, and recommending, that startups have a secondary or backup bank, ideally one that’s too big to fail, such as JP Morgan, Bank of America, or Wells Fargo.

One payroll is good, but more is better

For practical reasons, companies are keeping more than just one payroll’s worth of money in the escape hatch bank. They are also buying US Treasuries directly and using money market funds. The bottom line is, you never want to miss a payroll.

VC Funds Are Including Treasury Clauses in Term Sheets

Venture capital term sheets are issued by VC funds to outline the key conditions and terms that a startup will need to accept to get funding. One clause that is getting inserted into more term sheets now is a requirement for the startup to adopt treasury or cash management policies. This can range from a requirement to use more than one bank to having a board-ratified investment policy statement. 

Best Banks for Startups - Exploring Your Financial Partner Options

Arc
Arc
Apply now

Visit Arc website

Arc

Arc Pros and Cons

Arc Pros
  • Strong online interface
  • Responsive customer service via phone and email
  • Integration with QuickBooks Online
  • Innovative venture debt marketplace
  • Extended FDIC protection through Arc Gold
  • Cash management services and products
Arc Cons
  • Not technically a bank
  • No physical branch offices
  • Relatively new player in the market; still a startup
  • Doesn’t offer all services that banks offer

Apply for Arc Now

  • Arc’s new marketplace for venture debt
  • Bebe Kim of Basis explains how their financial platform connects data to help startups

Apply for Arc Now

Banc of California
Banc of California
Apply now

Visit Banc of California website

Banc of California

Banc of California Pros and Cons

Banc of California Pros
  • Specialized services for startups
  • Local and personalized service
  • Flexible lending solutions
  • Experienced business banking team
  • Strong regional presence
Banc of California Cons
  • Limited nationwide presence
  • Potentially higher fees than digital-only financial service providers

Apply for Banc of California Now

Apply for Banc of California Now

Bank of America
Bank of America
Apply now

Visit Bank of America website

Bank of America

Bank of America Pros and Cons

Bank of America Pros
  • Large, trusted financial institution
  • Extensive network of branch offices and ATMs
  • Integrates with QuickBooks Online
  • FDIC insurance and brokerage options
Bank of America Cons
  • Most bankers don’t get startups
  • Not early-stage focused
  • Customer service is hit or miss
  • Many accounts that are not a fit for startups

Apply for Bank of America Now

Apply for Bank of America Now

Brex
Brex
Apply now

Visit Brex website

Brex

Brex Pros and Cons

Brex Pros
  • Good online interface
  • Easy sign up if using Brex cards
  • Integrates with QuickBooks Online
  • Great cards and expense management tools
  • Extended FDIC protection through bank partners
Brex Cons
  • Not technically a bank
  • No physical branch offices
  • Primarily focused on credit cards and expense management
  • Banking services are through partner banks, not Brex directly

Apply for Brex Now

Apply for Brex Now

California Bank of Commerce
California Bank of Commerce

California Bank of Commerce

California Bank of Commerce Pros and Cons

California Bank of Commerce Pros
  • Decent online interface for managing accounts
  • Network of branch offices for in-person service
  • Offers startup-focused relationship managers
  • Integrates with QuickBooks Online
  • Offers venture debt loans to startups
  • Insured Cash Sweep for extended FDIC protection
California Bank of Commerce Cons
  • Limited geographic footprint with branch offices
  • Online interface may not be as advanced as some competitors
  • Insured Cash Sweep program has a lower limit than some competitors
  • Relationship-based approach may not suit all founders
Citizens Bank
Citizens Bank

Citizens Bank

Citizens Bank Pros and Cons

Citizens Bank Pros
  • Network of branch offices
  • Integrates with QuickBooks Online
  • Offers venture debt loans and lines of credit to startups
  • Insured Cash Sweep for extended FDIC protection
Citizens Bank Cons
  • Many bankers are more small business focused
  • Online interface is not a slick as fintech players
  • Newly hired team to focus on tech banking
HSBC
HSBC
Apply now

Visit HSBC website

HSBC

HSBC Pros and Cons

HSBC Pros
  • Global reach and international presence
  • Wide range of financial products
  • Specialized services for startups and SMEs
  • Digital banking and technology integration
  • Reputation, financial strength, and stability
HSBC Cons
  • Higher fees and minimum balance requirements
  • Less personalized service
  • Conservative approach to lending
  • Fewer branches in some regions

Apply for HSBC Now

Apply for HSBC Now

JP Morgan Chase
JP Morgan Chase
Apply now

Visit JP Morgan Chase website

JP Morgan Chase

JP Morgan Chase Pros and Cons

JP Morgan Chase Pros
  • Strong brand reputation and financial stability
  • Extensive branch network
  • Integration with QuickBooks Online
  • Cash management options for bigger startups
JP Morgan Chase Cons
  • Many services focused on later-stage startups
  • Too many non-startup focused account types
  • Non-tech bankers don’t “get” tech
  • Doesn’t offer venture debt to early-stage startups

Apply for JP Morgan Chase Now

Apply for JP Morgan Chase Now

Meow
Meow
Apply now

Visit Meow website

Meow

Meow Pros and Cons

Meow Pros
  • Good online interface
  • Integrates with QuickBooks Online
  • Offers FDIC insurance extension
  • Cash management services and products
  • Understands startups
Meow Cons
  • Not technically a bank
  • No physical branch offices
  • Relatively new player in the market; still a startup
  • Doesn’t offer all services that banks offer

Apply for Meow Now

Apply for Meow Now

Mercury
Mercury
Apply now

Visit Mercury website

Mercury

Mercury Pros and Cons

Mercury Pros
  • Excellent online interface and mobile app
  • Easy signups and new account setup
  • Generally responsive customer service
  • Seamless integration with QuickBooks Online
  • Offers FDIC insurance extension through partner banks Choice Financial Group, Column, N.A.; Members FDIC
  • Cash management services and products
Mercury Cons
  • Not technically a bank
  • No physical branch offices
  • Relatively new player in the market

Apply for Mercury Now

Mercury Treasury is offered by Mercury Advisory, LLC, an SEC-registered investment adviser (“Mercury Advisory”). Treasury accounts are custodied by Apex Clearing Corporation (member FINRA/SIPC). Treasury accounts are not FDIC insured, are not bank deposits, and are not guaranteed by Choice Financial Group or Column N.A., and may lose value. Please review Mercury Advisory’s ADV Wrap Fee Brochure for more detail. This is not an offer to sell or the solicitation of any offer to purchase any security. Mercury Treasury products are subject to investment risks and past performance is not indicative of future results. Please see full disclosures at mercury.com/treasury. Mercury Advisory is a wholly-owned subsidiary of Mercury Technologies, Inc.

Mercury’s Venture Debt and Working Capital loans are originated by Mercury Lending, LLC (NMLS: 2606284) and serviced by Mercury Servicing, LLC (NMLS: 2606285). Mercury Lending and Mercury Servicing are wholly-owned, separately managed subsidiaries of Mercury Technologies, Inc. At this time, we are unable to offer working capital or venture debt loans to businesses operating in California.

Mercury is a fintech company, not an FDIC-insured bank. Banking services provided through Choice Financial Group and Column N.A., Members FDIC. FDIC deposit insurance covers the failure of an insured bank. Deposits in checking and savings accounts are FDIC-insured through Choice Financial Group and Column N.A. and their Sweep Program Network Banks. Certain conditions must be satisfied for pass-through FDIC insurance to apply. Learn more here.

Apply for Mercury Now

Rho
Rho
Apply now

Visit Rho website

Rho

Rho Pros and Cons

Rho Pros
  • Intuitive online interface
  • Responsive customer service via email and online channels
  • Integration with QuickBooks Online
  • Competitive interest rates
  • Extended FDIC protection across all deposits
  • Accounts payable solution to streamline vendor payments
Rho Cons
  • Not technically a bank
  • No physical branch offices
  • Relatively new player in the market; still a startup

Apply for Rho Now

Apply for Rho Now

SVB / First Citizens
SVB / First Citizens

SVB / First Citizens

SVB / First Citizens Pros and Cons

SVB / First Citizens Pros
  • Extensive experience with startups and venture capital
  • Branch offices for in-person service
  • Relationship-based approach with dedicated startup bankers
  • Offers loans and lines of credit to startups
  • Cash management services and products
SVB / First Citizens Cons
  • Branch offices primarily located in tech hubs, not nationwide
  • Not as sleek an online interface as some fintech competitors
  • Relationship-based approach may not suit all founders
Treasure Financial
Treasure Financial
Apply now

Visit Treasure Financial website

Treasure Financial

Treasure Financial Pros and Cons

Treasure Financial Pros
  • User-friendly online interface
  • Responsive customer service via email and live chat
  • Integration with QuickBooks Online
  • Extended FDIC protection
  • Actively managed cash management products
  • Understands startups
Treasure Financial Cons
  • Not technically a bank
  • No physical branch offices
  • Relatively new player in the market; still a startup

Apply for Treasure Financial Now

Apply for Treasure Financial Now

Other banking tips and information from Kruze Consulting

Recent Blog Posts on Startup Banks

Check out our recent blog posts on startup banks and cash management.

Choosing the right banks is step one. Kruze runs the accounting, tax, and cash-management reporting that sits on top of them, for venture-backed startups from pre-seed through Series C. Talk to us or see pricing.

FDIC insurance for startup funds
FDIC insurance for startup funds
Updated on Tue, 5 May 2026
Protect startup cash—learn how FDIC insurance works, where coverage ends, and what founders should do to reduce bank-concentration risk.
by
Kruze Consulting
Kruze Consulting
How Should You Treat Short-Term Treasuries on the Balance Sheet?
How Should You Treat Short-Term Treasuries on the Balance Sheet?
Updated on Tue, 5 May 2026
A lot of startup companies are buying Treasuries directly through services like Treasure Fi, Arc, Meow, and other online services.
by
Kruze Consulting
Kruze Consulting
Banking solutions for startups: Mercury vs. Silicon Valley Bank
Banking solutions for startups: Mercury vs. Silicon Valley Bank
Updated on Tue, 5 May 2026
How Mercury and Silicon Valley Bank can support your business growth? Discover key features, benefits, and which bank is best suited for your specific needs.
by
Kruze Consulting
Kruze Consulting

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Viz AI

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Startup Venture Capital Assistance

With former venture capitalists on staff, our team is here to help you navigate the fundraising process and manage your board of directors

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Vanessa Kruze
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Pequity

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Zack Fisch

Head of Operations & Legal

Clients who have worked with Kruze have collectively raised over $15 billion in VC funding.

We set startups up for fundrising success, and know how to work with the top VCs.

Vanessa Kruze, CPA Kruze Consulting
Vanessa Kruze, CPA
Founder & CEO
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Bill Hollowsky, CPA Kruze Consulting
Bill Hollowsky, CPA
VP of Accounting Services
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Claudine Vantomme, CPA
Controller
Morgan Avery Kruze Consulting
Morgan Avery
SUT/R&D Sr. Tax Accountant
Beth Bassler Kruze Consulting
Beth Bassler
Controller, CPA
Protara Therapeutics

Grew from a 2-person startup to a NASDAQ listed public company.

"The Kruze team helped us grow from a 2-person startup to a NASDAQ listed public company in 2 years. We wouldn't have gotten public without Kruze's support. Anyone thinking of launching a startup should make Vanessa their first call!"
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Jesse Shefferman

CEO

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