US SME banking platform Novo bags $35m in Series B extension

Novo, a Florida-based banking start-up offering services for small and medium-sized enterprises (SMEs), has secured $35 million from GGV Capital in an extension to its Series B funding round.

Novo secures $35 million from GGV Capital

The new cash takes its total Series B funding to $125 million following an initial $90 million raise earlier this year led by Stripes and featuring participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures and BoxGroup.

The company has now raised more than $170 million in total equity.

Launched in 2018, Novo offers digital banking services for SMEs, entrepreneurs, and freelancers, including a free business checking account and apps to track cash management and streamline invoice and budget workflows. Its banking services are provided by Middlesex Federal Savings.

Novo says the funding comes “during a time of significant growth for the company”. It claims to have surpassed more than $12 billion in small business transactions since its inception.

Michael Rangel, Novo’s CEO and co-founder, says the company has “brought on tens of thousands of new small business customers” over the last year, with the start-up currently claiming more than 180,000 SME customers in total.