Novo, a New York-based mobile banking platform for businesses, has secured $4.8m in seed investment.

Participants in the fundraising were Crosslink Capital, Red Sea Ventures, Hack VC, RRE, Rainfall, and the Stanford Law School Venture Fund.

Crosslink Capital venture partner Jim Feuille said: “Novo brings low-cost deposits in exchange for bank sponsorship.

“Essentially becoming a decentralised technology and marketing arm for banks by recreating the way they acquire and retain customers, which is why we decided to lead the round with $3.5 million to scale their growth.”

Feuille now has a seat on the Novo board.

Launched last September, Novo offers businesses a free checking account with debit card that can be managed via mobile app.

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The application process for the checking account is said to take less than 10 minutes.

Moreover, users do not require any minimum balance.

The banking platform offers integration with Slack, Stripe, Xero, Zapier, and TransferWise, offering businesses real-time insights into their financial position.

Novo co-founder and CTO said: “Traditional banks don’t understand the needs of founders and are held back by legacy technology.

“We built Novo from the ground up allowing us to deploy new features every week and integrate into the tools you already use for your business. That’s the way banking should be.”