"Having access to principal capital is always advantageous, but it's even greater now, knowing we have a fintech partner to help mitigate financial risk and grow that capital."
After a successful fundraise, DataFlik needed to insulate and maximize returns on its cash
Sometimes, a business pivots to avoid a hazard, pursue an opportunity, or occasionally, do both.
Brooks Humphreys, Co-Founder of DataFlik, recently found himself in this position when an infusion of investor cash was suddenly freed up from its originally intended purposes. The capital had been raised to devote primarily to growth initiatives like marketing and new talent, but the product took off organically, enabling the founders to reroute those funds to other strategies.
A boon? Definitely. But also a challenge. Brooks knew the capital was only a true asset if he mitigated the multiple financial risks inherent in keeping it available for use. Most urgently, DataFlik’s capital needed insurance far above and beyond the standard $250,000 that any one financial institution could offer. Plus, the cash also needed to be insulated from the inflationary pressures diminishing its purchasing power.
After exploring a number of offerings from traditional banks, Brooks was recommended to Crescent by the fractional CFO who helps keep DataFlik’s financial information and processes organized.
"We wanted to generate a return on those funds while we're just stewarding and preserving the extra cash — before we allocate it. We looked at solutions through our bank and three or four different financial institutions, and none clicked with us as much as Crescent." — Brooks Humphreys
Crescent helps DataFlik safeguard investor capital, earn higher interest rates, and streamline treasury management
Crescent Cash answered DataFlik’s initial challenge by providing access to millions in FDIC insurance via the nation’s top network of banks. DataFlik’s investor capital in amounts above the standard FDIC-insurance limit of $250,000 are automatically distributed across the bank network in a sweep arrangement. This extra protection gives Brooks and his team illimitable peace of mind.
Crescent Cash also provides an industry-leading 4.40% APY, putting the capital to work until it’s needed to respond to new challenges or opportunities. The capital now earns a higher interest rate than the current rate of inflation, so it retains its purchasing power for the day DataFlik chooses to deploy it.
But what Brooks loves the most about his new treasury management solution is its future-forward usability. From the onboarding process (a traditionally laborious ordeal) to the dashboard’s interface, where routine tasks are easy to complete, he says this benefit carries as much weight as the original challenges he set out to address. Treasury management tasks like wire transfers and payment processing are a breeze, as is the simple act of seeing your organization’s cash balances through Crescent Cash.
Solidifying his decision to switch is the dynamic and deepening professional connections DataFlik is making with Crescent’s tuned-in, proactive team of experts.
“Anytime I have a question, I just email Crescent’s team, and their response time is usually about 10 minutes, which is 10 days ahead of my other banks’. So it’s just a great experience.” — Brooks Humphreys
DataFlik effortlessly preserves its growing capital while earning every step of the way
With Crescent Cash, Brooks has effectively transformed DataFlik's capital from a liability into an ever-appreciating asset. Having found the solution to meet DataFlik's needs, Brooks’ executive team can now focus on other, more strategic work like strategy and execution.
With its treasury management partner and processes securely in place, DataFlik enjoys a number of accumulating outcomes:
- Access to millions in FDIC insurance across network banks
- 90% reduction in account setup time
- 4.40% APY on deposited capital
Brooks says that what used to challenge his team now makes them excited for the future. Extra cash is no longer a problem but an opportunity to earn more capital.
“Crescent improves our cash management in 5 ways: insurance, interest, easier setup, streamlined transactions, faster customer service, and all without tying up our capital into long-term vehicles.” — Brooks Humphreys
† Subject to the terms of the applicable ICS Deposit Placement Agreement, OMB Bank will place deposits at FDIC-insured institutions through IntraFi’s ICS service. A list identifying IntraFi network banks appears at https://www.intrafi.com/network-banks. Certain conditions must be satisfied for “pass-through” FDIC deposit insurance coverage to apply. To meet the conditions for pass-through FDIC deposit insurance, deposit accounts at FDIC-insured banks in IntraFi’s network that hold deposits placed using an IntraFi service are titled, and deposit account records are maintained, in accordance with FDIC regulations for pass-through coverage.
* Interest rates and the associated APYs are current as of 9/12/2024 and are subject to change anytime without notice.