US-based small business banking platform Novo has secured $40.7m in Series A funding round.
The round was led by Valar Ventures. Several other entities including Crosslink Capital, Rainfall Ventures, Red Sea Ventures, and BoxGroup also participated in the funding round.
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The digital-only bank plans to use the new proceeds to further develop the banking platform. It also plans to more than double its headcount over the next year from the current strength of 60 employees.
Valar Ventures founding partner Andrew McCormack said: “The ability of the Novo team to grow the company rapidly during a year where businesses have faced unprecedented challenges is impressive.
“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 was launched in 2018 as since then has racked up more than 100,000 small business customers.
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By GlobalDataThis year, the company opened a new office in Miami and introduced several new features such as invoicing and budgeting. Novo also completed $1 billion in lifetime transactions in 2021.
Novo co-founder and CEO Michael Rangel said: “The modern-day online small business owner expects a digital banking platform to offer more than a well-designed interface — they want a robust, centralised, and no-fee application that offers true value-add to how they manage their money.
“Small businesses across the US 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.”
