NorthOne recently announced it has raised $67 million in Series B funding.
With participation from new and existing investors, NorthOne claims it is poised “to further expand the reach of its business banking and financial management platform across all sectors of the small business community.”
NorthOne is a financial technology company, “not a bank.” Banking services are “provided by The Bancorp Bank, N.A., Member FDIC.”
Eytan Bensoussan and Justin Adler founded NorthOne in 2016 “to serve traditional businesses on main streets across America.”
From construction workers to barbers, mechanics to restaurant owners, these businesses make up the majority of the country’s 33 million small businesses that “have been deeply underserved by financial institutions for decades.” This new funding will “enable NorthOne to continue raising the standard of products and services these owners should expect from their banking partners.”
Eytan Bensoussan, co-founder and CEO, said:
“Through an obsessive focus on our customers’ needs, we’ve been able to predictably build a business banking experience that unlocks an incredibly strong product-market fit. As our customers grow, their problems evolve beyond the bank account. By connecting the data layer between accounting, receivables, payables, lending, payroll—all the financial operations—and the bank account ledger, we can provide a transformative offering that’s always felt out of reach for our customers: a world-class finance department built for their business.”
Justin Adler, co-founder and COO, added:
“We founded NorthOne to solve big problems for small businesses. 50% of small businesses in America fail over a 5-year time horizon, and the majority of those failures are due to financial mismanagement and a lack of financial systems and controls. Our team is proud to be able to de-risk entrepreneurship and make starting and running a successful small business accessible to anyone.”
Despite one of the worst fundraising environments since 2008, this $67 million round proves that there “remains deep conviction in the future of small businesses in America, with NorthOne leading the charge to support them on their journey.”
Top investors from around the world “rallied around the New York-based startup’s mission and product, including Battery Ventures, Don Griffith, Drew Brees, Ferst Capital Partners, FinTLV, Next Play Capital, Operator Stack, Redpoint Ventures, Tencent and Tom Williams, bringing NorthOne’s fundraising total to $90.3 million raised since launch.”
Looking ahead, NorthOne has plans “to be the digital finance department powering every small business in America.”
With this funding, NorthOne will “build new working capital and credit products, as well as faster and more convenient payment solutions for busy entrepreneurs.”
It will also continue “to expand on the dozens of integrations already offered.” By connecting all the dots of the financial back office, NorthOne can “help business owners easily understand how money moves through their business and take control of their economic future.”