The small business banking platform Novo has announced that they have raised another $90 million in funding for small business development, bringing their total amount of funding raised to over $135 million.
Novo has already surpassed $5 billion in lifetime transactions and will now be using the new funding to develop digital banking products designed specifically to help small businesses grow. The latest Series B investment was led by Manhattan-based private equity and venture capital firm Stripes, with further participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures and BoxGroup.
Novo Small Business Checking Accounts
The $90 million in funding will enable Novo to develop modern lending capabilities, integrations and proprietary products for small businesses to send and receive money quicker and easier than ever before.
The new products will join the range of features already made available by Novo during 2021, including the Novo App Marketplace. The marketplace allows businesses to centralize their finances for more visibility into e-commerce sales, pending invoices and ready cash. The Novo platform also includes invoice management and payment processor integrations, as well as in-depth income and spending analysis.
Novo Building ‘Something That Small Businesses Love’
Saagar Kulkarni, who is a partner at major investor Stripes and will now be joining Novo’s board of directors, said of the latest round of funding: “Despite being the heart of the U.S. economy, the more than 30 million small businesses in the U.S. have always struggled to access even basic financial services as they are constantly overlooked by the big 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 just deliver a great digital banking experience, but actually deliver de novo [from new] financial products to a customer base that is yearning for them.
“At Stripes, we only invest in companies building amazing products, and Novo’s rave reviews, strong retention, and incredible growth make it clear it has built something that small businesses love.”
Removing Cash Flow’s Red Tape and Friction
Novo representatives have been speaking with thousands of their customers over the last few years, with the common theme being small businesses needing help removing ‘red tape and friction’ around cash flow.
The plan for the new projects funded by the latest round of investments is to improve cash flow for small businesses, enabling them to access their funds faster than ever before.