Novo raises $ 40.7 million for Series A to scale small business digital banking platform
MIAMI & NEW YORK – (BUSINESS WIRE) – Novo, the powerful and simple banking platform for small business, announced today that the company has raised $ 40.7 million in Series A funding. Valar Ventures led the round in which Crosslink Capital, Rainfall Ventures, Red Sea Ventures and BoxGroup participated.
“The modern online small business owner expects more than a well-designed user interface from a digital banking platform – they want a robust, centralized, toll-free application that offers real value for managing their money, ”said Michael Rangel, CEO and co-founder of Novo . “Small businesses in the US chose Novo because our team built a digital banking platform that makes everyday financial tasks a breeze – from creating invoices and receiving payments to connecting their accounts to other tools that their businesses need to run like Stripe, Shopify, Square, and more. ”
Since launch in 2018, more than 100,000 small businesses have opened a Novo account. In 2021, Novo surpassed $ 1 billion in lifetime transactions, announced a number of new features, opened a new office in Miami, and expanded its executive team. The company was also named Best Business Checking Account by CNBC in March 2021 and Best Business Checking Account 2021 by Money Magazine.
“The ability of the Novo team to grow the company rapidly in a year of unprecedented challenges is impressive, ”said Andrew McCormack, founding partner at Valar Ventures. “Novo tripled its small business customer base in the first half of 2021! Their bespoke infrastructure and banking platform put them in a prime position to expand their services even faster when we are past the health crisis. All of us at Valar Ventures are very excited to join this team. ”
Novo will use its Series A funding to continue building a world-class banking platform for small businesses, with an emphasis on helping business owners simplify their finances and optimize their cash flow. Novo currently has more than 60 employees and plans to more than double the number in the next year.
“Novo’s robust and flexible underlying infrastructure will enable our team to roll out a wide variety of features and integrations over the coming year that we believe small businesses will enjoy, “said Tyler McIntyre, CTO and Co-Founder of Novo .Novo will continue to focus on solving the key problems small businesses face: cash flow through faster payments and access to credit products that banks traditionally do not offer small businesses. ”
Novo is the powerful simple banking platform for small businesses. More information is available at www.banknovo.com.