[hugh3]

Just one quick comment: a lot of people here seem to be concerned about putting the money in an FDIC-insured account.

I'd say that this isn't a huge concern, as long as you don't put it anywhere particularly stupid. You're running a startup. The chances that your startup will go broke are 80%. The chances that your startup will go broke due to the bank vanishing are 0.0001%. You're more likely to go broke due to your servers being eaten by giant ants.

[jeffreymcmanus]

Clearly you have been living in a cave for the past two years; we are currently in one of the largest bank crises in history, and it's not over yet.

The definition of "anywhere particularly stupid" changed radically in the past few years. There were 157 bank failures in the U.S. in 2010, and another 140 in 2009.

Those depositors with FDIC-insured accounts did not lose a dime in these bank failures. Those who rolled the dice and exceeded the $250K limit, well, who knows what happened to their money.

[hugh3]

Actually as far as I know nobody has lost any money out of their bank accounts. I'm under the impression (someone can correct me if I'm wrong) that banks which have failed have had all their assets and liabilities transferred to another bank -- the FDIC limit hasn't come into play because the FDIC hasn't actually paid out any money.