- Novo, a small-business banking startup, just raised a $40.7 million Series A led by Valar Ventures.
- It’s focused on small e-commerce businesses.
- Here’s the 12-slide pitch deck Novo used to raise its Series A.
- See more stories on Insider’s business page.
Business banking is a hot market in fintech. And it seems investors can’t get enough.
Novo, the digital banking fintech aimed at small e-commerce businesses, raised a $40.7 million Series A led by Valar Ventures in June. Since its launch in 2018, Novo has signed up 100,000 small businesses. Beyond bank accounts, it offers expense management, a corporate card, and integrates with e-commerce infrastructure players like Shopify, Stripe, and Wise.
Founded in 2018, Novo was based in New York City, but has since moved its headquarters to Miami.
Small business-focused fintech a crowded space, with several players emerging over the last few years. The likes of Brex, Divvy, and Ramp focus on corporate cards and expense management. Divvy was acquired by Bill.com for $2.5 billion in June. Ramp secured a $1.6 billion valuation in April, just over a year since it launched in February 2020.
There are also fintechs like BlueVine that started in small-business payments, and have since added banking services. And there are competitors including Rho that, like Novo, launched with business bank accounts and have since added cards and payments.