Novo, a small business banking startup, has closed on a $40.7 million Series A led by Valar Ventures, a press release shows.
The neobank will use the fresh capital injection to scale its business and platform on the heels of its already impressive growth. Launched in 2018, the startup has over 100,000 small business customers and exceeded $1 billion in ‘lifetime’ transactions this year.
The round had participating investors including Crosslink Capital, Rainfall Ventures, Red Sea Ventures and BoxGroup.
“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,” Andrew McCormack, founding partner at Valar Ventures, said in a statement.
The company has over 60 employees and expects to more than double its headcount in the next year.
“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,” Tyler McIntyre, CTO and co-founder of Novo, said in a statement. “Novo will continue to focus on solving the top problems small businesses face: cashflow through faster payments, and access to lending products banks traditionally do not offer to small businesses.”
In other recent news, EBANX, a Latin American fintech which connects local customers to global merchants, announced a $400 million investment by Advent International, and an additional $30 million commitment to the company’s planned US IPO according to a press release.