Novo, a digital-only bank for US small businesses, has raised $40.7 million in a Series A funding round led by Valar Ventures.
Crosslink Capital, Rainfall Ventures, Red Sea Ventures, and BoxGroup joined the round for Novo, which launched in 2018 offering SMEs access to a free paperless business checking account with debit card access, all managed through a mobile app.
The firm has seen more than 100,000 small businesses open an account and this year surpassed $1 billion in lifetime transactions.
The funding will be used to build out the Novo platform, with a focus on helping business owners simplify their finances and optimise their cash flow, and to double headcount to more than 120.
Tyler McIntyre, CTO, Novo, says: "Novo will continue to focus on solving the top problems small businesses face: cashflow through faster payments, and access to lending products banks traditionally do not offer to small businesses."