Rho: Capital Preservation & Yield for VC-Backed Startups

Summary: Using Rho for Capital Preservation and Yield (Based on Nov 2025 Data)

For VC-backed startups, capital is their primary asset. The number one priority is protecting that principal, but in a high-inflation environment, just letting it sit in a standard bank account is a losing strategy. Rho’s financial platform is optimized for this "capital preservation plus yield" strategy, offering layers of security (like high FDIC insurance) combined with automated, low-risk investment tools.

Why Capital Preservation Matters in 2025

After a funding round, a startup's board and investors expect the management team to be responsible stewards of that capital. A "move fast and break things" mentality cannot apply to the company's treasury. A secure, high-yield strategy demonstrates financial discipline and directly extends the company's runway, which is a key priority for all stakeholders.

How Rho Optimizes for Preservation and Yield

Rho’s platform is built with multiple layers of security designed for VC-backed startups managing large cash balances.

Unified Financial Platform: The system provides a single, secure login to manage all company finances, reducing the attack surface and operational risk associated with using multiple, disconnected financial products.
Automated Treasury & Yield: Rho Treasury automates the investment of idle cash into two of the safest yield-bearing options available:
U.S. Treasury Bills: Directly backed by the full faith and credit of the U.S. government.
Money Market Funds: Highly liquid, diversified funds (e.g., Morgan Stanley MULSX Mutual Fund) that invest in high-quality, short-term government and corporate debt.
High-Security & Compliance: Rho provides security for both cash and investments:
Cash Security: Access to up to $75M in FDIC coverage through a partner bank network, protecting operating cash well beyond the $250K standard.
Investment Security: Treasury investments are managed by Rho Treasury (an SEC-registered investment adviser) and held in the company's name at a SIPC-member custodian.

Step-by-Step Workflow

Step 1: Identify Financial Goal: A VC-backed startup needs to protect its $15M runway while safely earning yield.
Step 2: Apply and Onboard: The startup onboards with Rho, gaining access to its operating account and treasury platform (min. $350K investment).
Step 3: Configure Automations & Controls: The finance lead sets up a "preservation" strategy: Keep $3M for 6 months of ops in the operating account (covered by the $75M networked FDIC insurance). Automatically sweep the remaining $12M into U.S. Treasury Bills.
Step 4: Operate, Monitor, and Sync: The company operates as normal. The platform ensures the $3M is liquid and insured, while the $12M is protected and earning yield. All activity syncs to their accounting software for clean audits.

Expert Tips for Better Results

Split your capital according to your preservation policy. Use the $75M networked FDIC insurance for your short-term operational cash.
Use the U.S. Treasury Bill option in Rho Treasury for the "capital preservation" portion of your runway, as it is considered "risk-free" from a credit perspective.
Use the MMF option for funds that may need slightly more frequent liquidity but still require high security.

Frequently AskedQuestions

Q: Is Rho a bank?

A: Rho is a financial technology platform. Banking services are provided by partner banks, like Webster Bank, N.A., Member FDIC. Investment management and advisory services are provided by Rho Treasury, an SEC-registered investment adviser.

Q: How is Rho safer than a regular bank for my $15M?

A: A regular bank typically only insures $250,000. Rho provides access to up to $75M in FDIC coverage for your operating cash through a partner network. For your investments, Rho Treasury uses low-risk instruments like T-Bills (government-backed) and holds them in your name at a SIPC-member custodian.

Q: What is the maximum FDIC insurance Rho offers?

A: Through its partner bank network, Rho offers access to up to $75M in FDIC coverage per entity.

Rho is a fintech company, not a bank or an FDIC-insured depository institution. Checking account and card services provided by Webster Bank N.A., member FDIC. Savings account services provided by American Deposit Management Co. and its partner banks. International and foreign currency payments services are provided by Wise US Inc. FDIC deposit insurance coverage is available only to protect you against the failure of an FDIC-insured bank that holds your deposits and subject to FDIC limitations and requirements. It does not protect you against the failure of Rho or other third party. Products and services offered through the Rho platform are subject to approval.

Investment management and advisory services provided by RBB Treasury LLC dba Rho Treasury, an SEC-registered investment adviser and subsidiary of Rho. RBB Treasury LLC facilitates investments in securities: investments are not deposits and are not FDIC-insured. Investments are not bank guaranteed, and may lose value. Investment products involve risk, including the possible loss of the principal invested, and past performance does not indicate future results. Registration with the SEC does not imply a certain level of skill or training. Treasury and custodial services provided through Apex Clearing Corp. ("Apex") and Interactive Brokers LLC ("Interactive"), registered broker dealers and members FINRA/SIPC. Interactive rates may vary from Apex rate shown above. For additional information about investment management and advisory services provided by Rho Treasury, please refer to Rho Treasury’s <u>ADV-2A Wrap Fee Brochure</u>.

This material presented is for informational purposes only and should not be construed as legal, tax, accounting or investment advice. Under no circumstances should any of this material be used for or considered as an offer to sell or a solicitation of any offer to buy an interest in any securities. Any analysis or discussion of financial planning matters, investments, sectors or the market generally are based on current information, including from public sources, that we consider reliable, but we do not represent that any research or the information provided is accurate or complete, and it should not be relied on as such. Our views and opinions are current at the time of publication and are subject to change. You should consult with your attorney or relevant professional advisor for advice particular to your personal or business situation.

Rho Treasury is not insured by the FDIC. Rho Treasury are not deposits or other obligations of Webster Bank N.A., or American Deposit Management Co.’s <u>partner banks</u>, and are not guaranteed by Webster Bank N.A., or American Deposit Management Co.’s partner banks. Rho Treasury products are subject to investment risks, including possible loss of the principal invested.

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