Small Business Banking FinTech Novo Raises $4.8 Million Seed Round

A startup with a stated goal of helping other startups manage their money just received a big chunk of change in venture seed financing. FinTech firm Novo announced this week that it had raised $4.8 million in a round led by Crosslink Capital. While Crosslink’s investment totaled $3.5 million, other participants in the round included Red Sea Ventures, Rainfall, Hack VC, RRE, and the Stanford Law School Venture Fund.

Novo launched last September with the goal of simplifying small business banking. The company says they enable business owners to set up a checking account in less than 10 minutes. These accounts are FDIC insured, include a debit card, and claim to have no hidden fees. Business owners can manage their funds via the startup’s app. Another unique aspect of Novo is that they offer integration for Stripe, Slack, Zapier, Xero, and more to help entrepreneurs monitor their business’s financial health.

Explaining what makes their company different, Novo co-founder and CTO Tyler McIntyre said, “Traditional banks don’t understand the needs of founders and are held back by legacy technology. We built Novo from the ground up allowing us to deploy new features every week and integrate into the tools you already use for your business. That’s the way banking should be.” Meanwhile, speaking to the Novo’s latest funding round, co-founder and CEO Michael Rangel said in a statement, “We couldn’t be happier with the support of Crosslink Capital, Jim Feuille, and the rest of the great investors in the syndicate.” He went on to share some of the firm’s plans, saying, “Our focus will be on onboarding the many account requests on our waitlist, as well as creating strategic partnerships with other value-added products and services to enhance the Novo ecosystem and customer experience in addition to expanding our team.”

Novo’s seed round is just the latest investment seen in the sector as a big year in FinTech funding is expected. According to Business Insider, the first half of 2018 saw global FinTechs raising $57.9 billion. That’s just shy of the previous record $62.5 billion raised during the entirety of 2015.

With their $4.8 million round, Novo is set up to scale their growth and potentially become a major player in the FinTech space. While previous products have targeted general consumers with better banking solutions, Novo’s focus on small business stands out. As a result it will certainly be interesting to see what the company is able to achieve and build with their newfound funds.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Bilt Extends Rent Day Promotion for Black Friday and Beyond

In October, the unique Bilt Mastercard unveiled its inaugural Rent Day promotion, which included the opportunity for cardholders to earn double rewards and nearly all of their purchases on the first of the month. That deal returned in November alongside the addition of a United Airlines status match offer and more. Now, just in time for Black Friday, Small Business Saturday, and Cyber Monday, Bilt is extended December's Rent Day...

Venmo App Adds Charitable Giving Interface

Although Thanksgiving and retail holidays such as Black Friday, Small Business Saturday, and Cyber Monday may be on the minds of many people, a popular peer-to-peer payment app is looking ahead to Giving Tuesday. This week, Venmo announced the rollout of a new interface that will make it easier for users to discover and donate to various charities. The feature is now live in the latest version of the Venmo...

American Express Introduces New Credit Card Approval Process

For some consumers, applying for a new credit card can be anxiety-inducing as there's a chance that they could not only be declined for the product but also have their credit impacted by the credit inquiry. To give these applicants better peace of mind, American Express is rolling out a new approval process. Amex has announced a new pilot program for its U.S. Personal Cards (meaning non-business cards) that will allow...