How Ripcord (a Series C company) insulates and grows its capital while streamlining treasury management

Ripcord wanted to safeguard and grow investor cash

As VP of Finance at Ripcord, Joshua Pozmantir knew burn reduction was just as important as revenue growth. That’s why, as he scoured his company’s statements for ways to cut costs and bolster income, revisiting Ripcord’s banking relationships stood out as an opportunity. Not only did Ripcord's past banking partner offer little to no interest on cash, but it also had a complicated fee structure that was difficult to understand. Critically, Joshua needed a cash management solution that charged his company less for commercial banking products, like automatic bill pay, while also yielding tangible benefits like a higher interest rate on cash.

Another reality weighed on Joshua; checking accounts with only the standard $250,000 in FDIC coverage left his company’s investor cash vulnerable. In March 2023, startups everywhere were reeling from the closure of banks whose primary customers were early-stage and growth-stage companies. Overnight, finance leaders like Joshua had to become risk mitigation experts in addition to their many other roles. In short, Joshua needed a banking solution that would derisk Ripcord’s funds.

“Our fee structures across checking, savings, and credit cards at our previous bank were extremely complex. I knew I wanted something different.” ­— Joshua Pozmantir

Ripcord now earns higher interest while simplifying banking

Joshua spent time reviewing his startup’s current banking relationship and digging into the institution’s fee structures and interest rates. He compared his findings to what Crescent offered, and clear differences emerged. 

Crescent’s 4.40% Annual Percentage Yield (APY)^* Cash accounts, provided by OMB, Member FDIC, immediately caught Joshua’s attention. Next, Joshua looked at the fee structure and saw that it was far more logical, reasonable, and transparent than his previous bank’s. The Crescent Cash account terms are transparent and easy to understand, which allows Joshua to stay aware of what Ripcord pays for their banking services. It also frees him up to move money more easily, streamlining his overall treasury management workflow.

In addition, the sweep network available with Crescent Cash accounts through Crescent’s relationship with OMB, offers the extra risk mitigation Joshua was looking for. The network lets Ripcord access millions in aggregate FDIC insurance across network banks^† so it never exceeds the standard maximum insurance limit ($250,000 per institution, per account type). As a result, Joshua is able to maintain Ripcord’s cash availability while ensuring FDIC insurance on its deposits.

“When I saw the high interest rate at Crescent, I had a call with the company’s CEO, and it all sounded very appealing.” ­— Joshua Pozmantir

Complete peace of mind: Ripcord’s funds are FDIC-covered but still instantly accessible

Joshua loves his experience with Crescent’s treasury management platform so much that he moved all the company’s funds — and all of its ongoing customer deposits — to Ripcord’s Crescent Cash account. 

Here’s a snapshot of Ripcord’s results so far: 

• ~$20k saved on complex banking fees
• 2-5 hours per week saved on cash management

As a customer, Joshua feels more than heard. In fact, Crescent’s leaders value his input so much that Joshua sends Crescent suggestions for new features and services and often collaborates with the company’s founder and CEO directly to help improve the product. 

“I’m incredibly impressed by Crescent and look forward to working with their team moving forward.” ­— Joshua Pozmantir