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SME banking platform Novo raises $90m

SME banking platform Novo raises $90m

Novo, a digital-only bank for US small businesses, has hit a $700 million valuation off the back of a $90 million Series B funding round led by growth equity firm Stripes.

Existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures, and BoxGroup joined the round, which brings Novo's total funding to more than $135 million.

Launched in 2018, Novo now services more than 150,000 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.

With the new funding in place, it plans to add lending capabilities, integrations, and products that allow small businesses to send and receive money more quickly.

Michael Rangel, CEO, Novo, says: "With this additional funding, Novo will take a huge leap forward in improving cash flow for small businesses. In the coming months and years, our small business customers will be able to access their funds faster than they ever thought possible."

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