SMB Bank Platform Novo Raises $90M

Novo announced Tuesday (Jan. 11) it has raised $90 million in Series B funding, bringing the valuation of the small business banking platform to $700 million.

The funding round was led by Stripes, with participation from past investors Valar Ventures, Crosslink Capital, Rainfall Ventures and BoxGroup. With the Series B, Novo has raised more than $135 million.

“With this additional funding, Novo will take a huge leap forward in improving cash flow for small businesses,” Michael Rangel, CEO and co-founder of Novo, said in a news release. “In the coming months and years, our small business customers will be able to access their funds faster than they ever thought possible.”

With the additional $90 million in funding, the Miami-based company says it will build out modern lending capabilities, integrations, and proprietary products that allow small businesses to send and receive money more quickly.

Read more: Novo Rolls Out Invoicing, Budgeting With SMB Banking Offering

Last year saw Novo make a number of enhancements to its product, including Novo Invoicing, which allows users to make and control an unlimited amount of invoices, and Novo Reserve, used to set aside funds for emergencies or capital investments.

The platform also added new functionality that includes self-service capabilities to add a Novo card to a digital wallet, as well as integrations with Shopify, Stripe and Square.

Novo also raised $40.7 million in venture capital last year, money the FinTech said would be used to build at its platform and double its staff.

Read more: FinTech Novo Grabs $40.7 Million To Fuel Growth

The company says this latest funding round arrives in an era of major growth for the company, which processed more than $4 billion in transactions last year and entered 2022 with a run-rate transaction volume north of $7 billion.