Small business banking platform Novo announced that it has raised an additional $90 million for small business development, bringing its total funding round to more than $135 million.
Novo has already surpassed $5 billion in lifetime transactions and will now use the new funding to develop digital banking products designed specifically to help small businesses grow. The last Series B investment was led by Stripes, a Manhattan-based private equity and venture capital firm, with additional participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures and BoxGroup.
Novo Chequing Accounts for Small Business
The $90 million funding will allow Novo to develop modern lending capabilities, integrations and proprietary products for small businesses to send and receive money faster and easier than ever before.
The new products will join the range of features already made available by Novo in 2021, including the Novo App Marketplace. The marketplace allows businesses to centralize their finances for more visibility into e-commerce sales, pending invoices, and available cash. The Novo platform also includes invoice management and payment processor integrations, as well as in-depth revenue and expense analytics.
Novo is building “something small businesses love”
Saagar Kulkarni, partner at lead investor Stripes and who will now join Novo’s board of directors, said of the latest round of funding: “Despite being at the heart of the US economy, the more than 30 million small businesses in the United States have historically struggled to access even basic financial services as they are consistently neglected by large banks. 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 only deliver a great digital banking experience, but actually deliver de novo [from new] financial products to customers who are looking for them.
“At Stripes, we only invest in companies that create amazing products, and Novo’s rave reviews, strong retention, and incredible growth clearly show that it’s built something small businesses love.”
Eliminate bureaucracy and cash flow friction
Novo representatives have spoken to thousands of their clients over the past few years, with the common theme being that small businesses need help eliminating the “bureaucracy and friction” around cash flow.
The plan for new projects funded by the latest round of investment is to improve cash flow for small businesses, allowing them to access their funds faster than ever.