I'm copy/pasting a commend I made elsewhere, but I'm not sure this is the case. > I worked at a startup that took in over $100m in investment, and I was curiou

I'm copy/pasting a commend I made elsewhere, but I'm not sure this is the case. > I worked at a startup that took in over $100m in investment, and I was curious so I asked the cofounder how they protected that. According to him the money was divided up into chunks smaller than $249k, pushed off to a custom entity made just for the purpose, and then invested in bonds or CDs on a rotating basis. Basically if you have a ton of money having it sit in a bank account is one of the worst things you could do with it, so most people who bring in a lot mostly just keep operational expenses in their bank account while leaving the rest of the money in other financial instruments.