Total amount raised
$6 Millions
Latest funding date
March, 2019
Location
Novo has successfully raised significant funding through multiple rounds, attracting a diverse group of investors. The digital banking platform is designed to cater to small business owners, entrepreneurs, and freelancers.
Keep reading to explore the intricacies of Novo's fundraising journey and the investors backing this innovative platform.
What Is Novo?
Novo, founded in 2016 by Michael Rangel and Tyler McIntyre, is a digital banking platform based in Miami, Florida. The company focuses on providing online business banking solutions tailored for small business owners, entrepreneurs, and freelancers.
With a team of 251-500 employees, Novo offers a range of services including business checking accounts, credit cards, small business financing, bookkeeping, budgeting, and invoicing. The platform is designed to integrate seamlessly with other business tools, making it a comprehensive solution for modern business needs.
Novo's mission is to offer better business deposit accounts through a network of FDIC-insured community banks, ensuring security and trust for its users. The company continues to innovate and expand its offerings to meet the evolving needs of its diverse clientele.
How Much Funding Has Novo Raised?
- Pre-Seed Round
- Amount Raised: Not publicly disclosed
- Date: October 2017
- Lead Investors: Techstars
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of Novo's digital banking platform.
- Non-Equity Assistance
- Amount Raised: Not publicly disclosed
- Date: January 2018
- Lead Investors: DCU FinTech Innovation Center
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To gain strategic support and resources for early-stage growth.
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: September 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and expand initial user base.
- Seed Round
- Amount Raised: $4.8M
- Date: March 2019
- Lead Investors: Crosslink Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance product offerings.
- Series A
- Amount Raised: $40.7M
- Date: June 2021
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand market reach.
- Series B
- Amount Raised: $90M
- Date: January 2022
- Lead Investors: Stripes
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and expand service offerings.
- Series B
- Amount Raised: $35M
- Date: November 2022
- Lead Investors: Notable Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support platform expansion and new product development.
- Debt Financing
- Amount Raised: $125M
- Date: August 2023
- Lead Investors: Victory Park Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide small businesses with access to working capital through Novo Funding.
Total Amount Raised: $295.5M. Current Valuation: Not publicly disclosed.
Key Investors
- Victory Park Capital
- Details: Victory Park Capital is a private equity firm that provides debt and equity financing to middle-market companies. They are known for their flexible investment approach and deep industry expertise.
- Investment Focus Areas: Financial services, healthcare, technology.
- Notable Investments: Not publicly disclosed.
- Stripes
- Details: Stripes is a growth equity firm that invests in internet, software, and consumer businesses. They focus on partnering with market-leading companies to accelerate growth.
- Investment Focus Areas: Internet, software, consumer businesses.
- Notable Investments: Not publicly disclosed.
- Valar Ventures
- Details: Valar Ventures is a venture capital firm that invests in technology companies. They are known for their global perspective and focus on transformative businesses.
- Investment Focus Areas: Technology companies.
- Notable Investments: Not publicly disclosed.
- Crosslink Capital
- Details: Crosslink Capital is a venture capital firm that invests in early-stage and growth-stage companies. They have a strong track record of supporting innovative startups.
- Investment Focus Areas: Early-stage companies, growth-stage companies.
- Notable Investments: Not publicly disclosed.
- Techstars
- Details: Techstars is a global platform for investment and innovation that helps entrepreneurs succeed. They offer mentorship-driven accelerator programs and seed-stage investment funds.
- Investment Focus Areas: Entrepreneurs, startups across various sectors.
- Notable Investments: Not publicly disclosed.
What's Next for Novo?
Novo's future looks promising as it leverages a $125 million facility from Victory Park Capital to launch Novo Funding, aimed at providing working capital to small businesses. This initiative addresses a critical need in the market, offering quick and seamless access to funds, which could significantly boost Novo's market presence.
With the fintech industry rapidly evolving, Novo is well-positioned to attract further investments, potentially leading to additional funding rounds. However, the company must navigate challenges such as intense competition and the need for efficient fund distribution to maintain its growth trajectory.
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