It is shockingly easy for a company to mitigate the bank failure risk. 1. Open account at Fidelity 2. Purchase brokered CDs in denominations <$250K in a ladder

It is shockingly easy for a company to mitigate the bank failure risk. 1. Open account at Fidelity 2. Purchase brokered CDs in denominations <$250K in a ladder matching your cash flow needs (you have a cash flow spreadsheet, don't you?) https://www.fidelity.com/fixed-income-bonds/cds https://www.fidelity.com/fixed-income-bonds/cds It's not like the risk of banks was a secret. Click on the "Risks" tab at the link above -- it's near the top of the list. This strategy works for raises of up to several million dollars. If you've raised more than that, spend a bit of money on someone to help you set up a treasury ladder, which scales to any size of raise.