Small Business Banking FinTech Novo Raises $4.8 Million Seed Round

Home » FinTech » FinTech News » Small Business Banking FinTech Novo Raises $4.8 Million Seed Round

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.

Comments

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

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

Home Mortgage Applications Reached a Nine-Year High Last Week

Despite some parts of the country seeing snow this past week, make no mistake that it is officially spring. That means that, in addition to blooming trees and allergies, it's time for home sales to pick back up after the slower winter season. On that note it seems that the...

More Small Business Owners Turning to Online Lenders

When businesses are in need of a loan, where do they turn? Previously many may have said their local bank or another major institution. Although that's still often the case, the number of entrepreneurs looking to online lenders for funding continues to grow. A new study by Federal Reserve Banks...

Coinbase Launches Crypto Visa Debit Card (In the UK)

Back before cryptocurrencies became the gold rush of 2017, the intent was always to spend and use such assets like you would fiat currency. The problem was that only a handful of sites and physical stores accepted Bitcoin, with even fewer allowing for payments in other digital currencies. One proposed...