The company plans to use the funding to scale its operations and double its employee headcount. Here are the top-line bullets you need to know.
Novo, a digital business banking platform, has raised $40.7M in a Series A that drew participation from Valar Ventures, Crosslink Capital, and BoxGroup, among others.
HOW’S THE COMPANY PERFORMING?
- New York-based Novo offers online banking solutions to small and medium businesses (SMBs). It helps enterprises create business accounts with no minimum balance requirement or paperwork.
- The company serves over 100,000 SMB customers and has recorded $1B in lifetime transactions.
- Novo currently has about 60 employees.
WHY DOES THE MARKET MATTER?
- The fintech market is projected to grow at a CAGR of 22.2% to reach a value of $305B by 2025, according to Market Data Forecast.
- The market has seen an increase in funding in recent years. In 2020, VCs invested $42B in fintech companies.
- The Covid-19 pandemic drove adoption of cashless transactions and increasing demand for digital payment solutions and online payment gateways.