Novo Raises $40.7M Series A to Scale Digital Banking Platform for Small Businesses
Novo, the powerfully simple small business banking platform, today announced that the company has raised $40.7M in Series A funding. Valar Ventures led the round, with participation from Crosslink Capital, Rainfall Ventures, Red Sea Ventures, and BoxGroup.
“The modern-day online small business owner expects a digital banking platform to offer more than a well-designed interface — they want a robust, centralized, and no-fee application that offers true value-add to how they manage their money,” said Michael Rangel, CEO and co-founder of Novo. “Small businesses across the U.S. have chosen Novo because our team has built a digital banking platform that makes everyday financial tasks a breeze — from creating invoices and receiving payments to connecting their accounts with other tools their businesses need to operate like Stripe, Shopify, Square, and more.”
Since launching 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 grew its leadership team. The company was also named both CNBC’s Best Business Checking Accounts of March 2021 and Money Magazine’s Best Business Checking Accounts of 2021.
“The ability of the Novo team to grow the company rapidly during a year where businesses have faced 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 custom infrastructure and banking platform put them in prime position to expand their services at an even faster pace as we come out of the health crisis. All of us at Valar Ventures are excited to join this team.”
Novo will use its Series A funding to continue building out a best-in-class platform for small business banking, with a focus on helping business owners simplify their finances and optimize their cash flow. Novo currently has more than 60 employees, with plans on more than doubling its headcount over the next year.
“Novo’s robust and flexible underlying infrastructure will allow our team to introduce a variety of features and integrations in the coming year that we’re confident small businesses will love using,” said Tyler McIntyre, CTO and co-founder of Novo. “Novo will continue to focus on solving the top problems small businesses face: cashflow through faster payments, and access to lending products banks traditionally do not offer to small businesses.”
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