At a Glance
Digital banking platform Novo has raised $40.7M in a Series A funding round. The company has crossed $1B in lifetime transactions and plans to use the proceeds to scale its platform
Miami-based Novo, a digital banking platform for small businesses, has raised $40.7 million in a Valar Ventures-led Series A funding round. Other investors – Crosslink Capital, Rainfall Ventures, Red Sea Ventures, and BoxGroup – participated in the funding round, the company said in its press release.
The company stated that it would use the proceeds from the investment to introduce new capabilities for assisting small businesses save time and money by optimizing their cash flow. It will continue to build its platform and double its headcount over the next year. Tyler McIntyre, co-founder and CTO of Novo, added that Novo’s robust and flexible infrastructure would pave the way for various features and integrations in the coming year for small businesses.
According to Michael Rangel, co-founder and CEO of Novo, modern-day online small business owners require digital banking platforms to provide not just a well-designed interface but a robust, centralized, and no-fee application that aids them in their money management. He added,
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.According to Michael Rangel, co-founder and CEO of Novo
Andrew McCormack, general partner at Valar Ventures Management LLC, lauded the Novo team’s ability to grow during unprecedented times presenting mounting challenges and said,
Novo tripled its small business customer base in the first half of 2021! Their custom infrastructure and banking platform put them in a 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.Andrew McCormack, general partner at Valar Ventures Management LLC,
Novo stated that it has recently crossed over $1 billion in lifetime transactions.