Novo, an all-digital neobank for US-based small businesses, has reportedly topped up its Series B round with a $35 million investment coming from GGV Capital.
The additional funding brings Novo’s Series B investment round to $125 million, and total equity funding to over $170 million.
Established in 2018, Novo now services over 180,000 SMEs, offering access to a free-of-cost paperless business checking account with debit card access, all managed via an intuitive mobile app.
This past year, the company reportedly added an app marketplace, invoicing, cash flow insight tools and the option to add up to five Reserves to their accounts.
Hans Tung, managing partner, GGV Capital, stated:
“What’s impressed us most about Novo is their ecosystem approach to small business checking — they’ve built a robust, intuitive platform that allows SMBs to connect all of their business and financial applications to their Novo account. I’m confident that Novo will continue to scale its app partnerships effectively, and become one of the most widely-used small business checking accounts in the United States.”
Michael Rangel, Novo CEO and co-founder, said:
“When Tyler [McIntyre] and I moved Novo’s headquarters to Miami in 2021, we initially weren’t participating in the tech community because we were so busy working. As soon as we got more involved with the broader ecosystem, we became very bullish on Miami as a Tech Hub. Recently, I went to a few tech events and noticed that they were tangibly different from anything I’ve experienced in Miami before in terms of sheer quantity of attendees, and the quality of the speakers. Given my long-term perspective on Miami, having grown up in the area, I can comfortably say the city has continued changing for the better.”
As noted by its management, Novo claims it is “the powerfully simple, secure, and award-winning banking platform built for small businesses and their unique needs.” Free business checking and smart, flexible, modern tools “to help any small business get an edge and grow. Powered by Middlesex Federal Savings.”
Novo is “a fintech, not a bank.” Banking services “provided by Middlesex Federal Savings, F.A.; Member FDIC.”