Total amount raised
$297M
Latest funding date
2023-08-01
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.
Novo has raised funding across multiple rounds backed by investors including Valar Ventures, Stripes, Notable Capital (formerly GGV Capital), Victory Park Capital, and Crosslink Capital.
Keep reading to explore Novo's fundraising journey and what it means for the future of small business banking.
What Is Novo?
Novo is a Miami-based fintech company providing a digital banking platform tailored for small business owners, entrepreneurs, and freelancers. Founded in 2016 by Michael Rangel and Tyler McIntyre, Novo partners with Middlesex Federal Savings to offer fee-free business checking accounts, seamless integrations with tools like Stripe, Shopify, and QuickBooks, and access to working capital through its Novo Funding product. Novo is not a bank itself — it is a technology platform designed to modernize and simplify business banking for the underserved small business segment.
How Much Funding Has Novo Raised?
- Pre-Seed (Techstars Accelerator)
- Amount Raised: USD 100,000
- Date: October 2017
- Lead Investors: Techstars
- Participants: Techstars
- Seed Round I
- Amount Raised: USD 1,200,000
- Date: September 2018
- Lead Investors: Undisclosed
- Participants: RRE Ventures, Red Sea Ventures, Silicon Badia, Techstars, Plug and Play FinTech, BoxGroup (angel investors)
- Seed Round II
- Amount Raised: USD 4,800,000
- Date: March 2019
- Lead Investors: Crosslink Capital
- Participants: Red Sea Ventures, RRE Ventures
- Series A
- Amount Raised: USD 40,700,000
- Date: June 2021
- Lead Investors: Valar Ventures
- Participants: Crosslink Capital, Rainfall Ventures, Red Sea Ventures, BoxGroup
- Series B (Initial Close)
- Amount Raised: USD 90,000,000
- Date: January 2022
- Lead Investors: Stripes
- Participants: Valar Ventures, Crosslink Capital, Rainfall Ventures, BoxGroup
- Series B (Extension)
- Amount Raised: USD 35,000,000
- Date: November 2022
- Lead Investors: Notable Capital (formerly GGV Capital)
- Participants: GGV Capital (Robin Li, Principal)
- Debt Financing (Credit Facility)
- Amount Raised: USD 125,000,000
- Date: August 2023
- Lead Investors: Victory Park Capital
- Participants: Victory Park Capital
Total Amount Raised: At least $296.8M based on disclosed funding (including $125M debt facility from Victory Park Capital in August 2023, $35M Series B extension, $90M Series B, $40.7M Series A, $4.8M Seed II, $1.2M Seed I, and $100K Pre-Seed).
Key Investors
- Victory Park Capital
- Details: Victory Park Capital (VPC) is a Chicago-based alternative investment firm. VPC led Novo's $125M debt financing (credit facility) in August 2023 to power the Novo Funding product, which provides working capital to small businesses.
- Stripes
- Details: Stripes is a growth equity firm focused on enterprise and consumer businesses. It led Novo's initial $90M Series B round in January 2022, valuing the company at $700M.
- Notable Capital (formerly GGV Capital)
- Details: Notable Capital (previously operating as GGV Capital in the U.S.) led Novo's $35M Series B extension in November 2022. Robin Li, Principal at GGV Capital, joined Novo's board as an observer.
- Valar Ventures
- Details: Valar Ventures is a New York-based venture capital firm known for backing fintech companies. Valar led Novo's $40.7M Series A in June 2021 and has participated in multiple subsequent rounds.
- Crosslink Capital
- Details: Crosslink Capital is an early-stage investor that led Novo's $4.8M Seed Round II in March 2019 and has participated in several later rounds, including the Series A and Series B.
What's Next for Novo?
As Novo continues to grow its customer base of small business owners, the company is focused on expanding its suite of financial products. With the $125M credit facility from Victory Park Capital powering its Novo Funding working capital product, the company is well-positioned to deepen its relationship with small businesses beyond just banking. Novo aims to become the all-in-one financial hub for SMBs, combining checking accounts, payments, and financing in a single platform.
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