SME challenger bank NorthOne raises $21m

SME challenger bank NorthOne raises $21m

NorthOne, a digital challenger bank targeting America's small businesses, freelancers and startups, has raised $21 million in a Series A funding ground led by Battery Ventures and joined by Redpoint Ventures and Tom Williams.

NorthOne says its API-enabled platform can offer a more tailored service than its rivals because it has been built from the ground up for small businesses.

Among its features are multi-language customer service teams, a network of 300,000 ATMS for cash and cheque deposit, seamless overseas vendor payments, and software integration with expense, accounting and ecommerce tools.

The firm has gained some traction in recent month, signing up one per cent of all new small business bank accounts in the US in the second half of last year, showing particular strength in the Midwest and Deep South.

The new funding will be used on marketing and customer acquisition and to make product and engineering hires.

Eytan Bensoussan, CEO, NorthOne, says: “We created NorthOne to serve businesses that are often underserved by big banks. Having grown up in a family of small business owners myself, I know first-hand what to expect when it comes to small business banking.

"With this funding, NorthOne will be able to continue to develop solutions that simplify the most painful part of managing a small business, its finances.”

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