Novo, a Miami, Florida-based small business banking platform, raised $90m in Series B funding at a $700m valuation.
The round, which brought Novo’s total funding to more than $135m, was led by Stripes with participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures, and BoxGroup. In conjunction with the funding, Saagar Kulkarni, Partner at Stripes, will be joining Novo’s Board of Directors.
The company intends to use the funds to build out modern lending capabilities, integrations, and proprietary products that allow small businesses to send and receive money more quickly.
Led by Michael Rangel, CEO and co-founder, and Tyler McIntylre, CTO and co-founder, Novo is a banking platform for small businesses.
New features will add to the series of enhancements the company announced in 2021:
- The Novo App Marketplace, which lets businesses centralize their finances, giving them visibility into everything from e-commerce sales, to pending invoices, and cash-on-hand. The marketplace also allows small businesses to take advantage of dozens of native integrations, and connect to over 1,000 applications and tools that they already use.
- Invoicing, which enables customers to create and manage an unlimited number of invoices on the platform and to process credit card payments via their payment processor integrations.
- Cash flow Insights, which allows customers to review their top income and spending categories, compare income from different time periods, and review cash flow and inbound transactions.
- Reserves, which allows customers to add up to five Reserves to their account, and allocate those funds for different expenses they want to save for, from estimated taxes to large capital expenditures.
The company has surpassed $5 billion in lifetime transactions — processing more than $4 billion in transactions in 2021 alone, and entering 2022 with a run-rate transaction volume of more than $7 billion.