Total amount raised
$6 Million
Latest funding date
3/1/2019
Location
Novo has participated in 7 funding rounds, with the latest being a Debt Financing round. The digital banking platform for small business owners, entrepreneurs, and freelancers is backed by 20 investors, including Victory Park Capital and Notable Capital.
Keep reading to explore the intricacies of Novo's fundraising journey and the investors backing this innovative platform.
What Is Novo?
Novo is a fintech company based in Miami, Florida, providing a digital banking platform tailored for small business owners, entrepreneurs, and freelancers. The company operates within the B2B, Banking, Financial Services, and FinTech industries.
With an employee count ranging between 251 and 500, Novo offers a range of services including free checking accounts, credit cards, funding, bookkeeping, invoicing, budgeting, and integrations with other business tools. The platform emphasizes security with FDIC insurance, bank-level encryption, and real-time fraud alerts.
How Much Funding Has Novo Raised?
- Pre-Seed
- Amount Raised: USD 100,000
- Date: October 2017
- Lead Investors: Techstars
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of their digital banking platform.
- Non-Equity Assistance
- 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 without diluting equity.
- Seed
- Amount Raised: USD 4,800,000
- Date: March 2019
- Lead Investors: Crosslink Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand their product offerings and scale operations.
- Series A
- Amount Raised: USD 40,700,000
- Date: June 2021
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance their digital banking services.
- Series B
- Amount Raised: USD 90,000,000
- Date: January 2022
- Lead Investors: Stripes
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop their platform and expand their market reach.
- Series B
- Amount Raised: USD 35,000,000
- Date: November 2022
- Lead Investors: Notable Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Novo's small business banking platform.
- Debt Financing
- Amount Raised: USD 125,000,000
- 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: USD 295,600,000. 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 across various industries. They focus on providing flexible financing solutions to companies that may not have access to traditional sources of capital.
- Investment Focus Areas: Private credit, private equity, special situations.
- Notable Investments: Novo.
- Notable Capital
- Details: Notable Capital is an investment firm that focuses on high-growth companies in various sectors. They aim to support innovative businesses with strategic capital and resources.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Novo.
- Stripes
- Details: Stripes is a growth equity firm that invests in internet, software, and consumer businesses. They partner with companies that have the potential for significant growth and market impact.
- Investment Focus Areas: Internet, software, consumer.
- Notable Investments: Blue Apron, Reformation, Udemy.
- Valar Ventures
- Details: Valar Ventures is a venture capital firm that invests in early-stage technology companies. They focus on companies that have the potential to disrupt traditional industries.
- Investment Focus Areas: Fintech, software, consumer internet.
- Notable Investments: TransferWise, Xero, N26.
- Crosslink Capital
- Details: Crosslink Capital is a venture capital and growth equity firm that invests in early-stage and growth-stage companies. They focus on partnering with entrepreneurs to build market-leading companies.
- Investment Focus Areas: Technology, consumer, healthcare.
- Notable Investments: Pandora, Ancestry.com, Coupa.
What's Next for Novo?
Novo's recent $125 million facility from Victory Park Capital opens up significant opportunities for the fintech company. This funding will enable Novo to provide small businesses with quick and flexible working capital through its new feature, Novo Funding. The ease and speed of the application process, combined with the flexibility in fund usage, make this offering particularly attractive to small businesses that often struggle to access traditional funding options.
As the demand for alternative financial solutions grows, Novo is well-positioned to attract more investors and secure additional funding rounds. The success of their pilot program, which saw thousands of small business owners accessing over $35 million in working capital, indicates a strong market need that Novo can continue to tap into. This could lead to further fundraising opportunities and potential acquisitions to enhance their technological capabilities.
However, Novo will face challenges such as competition from other fintech companies and the need to efficiently manage the $125 million facility. Ensuring the quality and reliability of their predictive financial tools and automated functions will be crucial. Despite these challenges, the growing interest in fintech solutions and the critical role of small businesses in the economy present a promising path forward for Novo.
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