Novo reported that it has raised $90 million in Series B fundraising at a valuation of $700 million. Novo is a banking platform for small businesses. Stripes led the investment, with current investors Valar Ventures, Crosslink Capital, Rainfall Ventures, and BoxGroup continuing to participate. Novo's total funding to date exceeds $135 million.
Michel Rangel, CEO, and co-founder of Novo, stated, "With this additional funding, Novo will take a huge leap forward in improving cash flow for small businesses. In the coming months and years, our small business customers will be able to access their funds faster than they ever thought possible."
Novo intends to use the additional $90 million to expand its contemporary lending capabilities, integrations, and exclusive solutions that enable small businesses to send and receive money more swiftly.
These new features complement several advancements announced by Novo in 2021:
-
The Novo App marketplace
-
Invoicing
-
Cash flow insights
-
Reserves
“What sets Novo apart is a fundamentally different approach to helping small businesses succeed. Instead of opting for incremental change, Novo built its banking platform from the ground up so that it could not just deliver a great digital banking experience, but actually deliver de novo financial products to a customer base that is yearning for them. At Stripes, we only invest in companies building amazing products, and Novo’s rave reviews, strong retention, and incredible growth make it clear it has built something that small businesses love.” said Saagar Kulkarni, Partner at Stripes, who will be joining Novo’s Board of Directors.
Novo's current fundraising round coincides with the company's rapid expansion. Novo has exceeded $5 billion in lifetime transactions — processing over $4 billion in 2021 alone — and will enter 2022 with a run-rate transaction volume of more than $7 billion. Novo also relocated its headquarters to Miami and was recognized with several honors, including Money Magazine's "Best Business Checking Accounts of 2021," CNBC's "Best Business Checking Accounts," and The Banker's "Most Innovative Bank in North America."
“For small business owners, the technology that powers their digital banking platform should fade into the background. As we look towards the rest of 2022 and beyond, one area we're particularly excited about is providing short-term capital for reducing cash flow friction and implementing technologies that can automate this process.”
Tyler McIntylre, CTO and co-founder of Novo