Novo Raises $90 Million in Series B Funding

Novo, the powerfully simple small business banking platform, announced that the company has raised $90 million in Series B funding at a $700 million valuation. Stripes led the round, with continued participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures, and BoxGroup. This latest round brings Novo’s total funding to more than $135 million.

“After speaking with thousands of our more than 150,000 customers over the last few years, one theme keeps coming up: the more you can help a small business remove all red tape and friction around cash flow, the better off that business is," said Michel Rangel, CEO and co-founder of Novo. "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."

With the additional $90 million in funding, Novo will build out modern lending capabilities, integrations, and proprietary products that allow small businesses to send and receive money more quickly.

Novo’s latest funding round comes at a time of significant growth for the company. Novo has surpassed $5 billion in lifetime transactions — processing more than $4 billion in transactions in 2021 alone, and entering 2022 with a run-rate transaction volume of more than $7 billion. Novo also opened its new headquarters in Miami, and received multiple awards, including CNBC’s “Best Business Checking Accounts,” Money Magazine’s “Best Business Checking Accounts of 2021,” 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,” said Tyler McIntylre, CTO and co-founder of Novo. “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."

(Source: Businesswire)