US banking start-up Novo lands $40m in Series A round
Novo, a New York-based banking platform for small businesses, has raised $40.7 million in Series A funding.
The financing round was led by Valar Ventures with participation from Crosslink Capital, Rainfall Ventures, Red Sea Ventures and BoxGroup.
The start-up aims to use the investment to scale its platform and “more than double” the number of staff by next year.
In a blog post, Michael Rangel, CEO and co-founder of Novo, says he believes the investment “is the largest-ever Series A financing of any challenger bank, anywhere in the world”.
He adds: “This funding is reflective of the incredible work our team has done in building a banking product that truly helps small businesses, as well as our broader vision for how technology can help small businesses across all areas of their finances.”
Launched in 2018, Novo claims to have processed over $1 billion in transactions for its customer base of more than 100,000 small businesses.
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.
“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,” says Tyler McIntyre, CTO and co-founder.