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SMB banking startup Novo raises $35m

Novo, a digital-only bank for US small businesses, has topped up its Series B funding round with a $35 million investment from GGV Capital.

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SMB banking startup Novo raises $35m

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The extra funding brings Novo’s Series B to $125 million, and total equity funding to more than $170 million.

Launched in 2018, Novo now services more than 180,000 SMEs, providing access to a free paperless business checking account with debit card access, all managed through a mobile app.

Last year the firm added an app marketplace, invoicing, cash flow insight tools and the ability to add up to five Reserves to their accounts.

Hans Tung, managing partner, GGV Capital, says: “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.”

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