Novo Valuation, Funding & Investors

Novo is valued at $755M as of November 2022.

See full Novo profile

Last Novo valuation

$755M

Series B · Nov 2022

Last Novo funding round

$35M

Series B · Nov 2022

Cumulative funding Novo raised

$171M

across 5 funding rounds

Key investors in Novo

  • Crosslink Capital
  • Rainfall Ventures
  • BoxGroup
  • Valar Ventures
  • Red Sea Ventures
  • Techstars

Novo Overview

About Novo

Novo is a Miami-headquartered digital banking platform serving small businesses with fee-free checking accounts, virtual cards, and integrations to QuickBooks and Stripe. Launched in 2018, it partners with Middlesex Federal Savings for FDIC insurance up to $250,000 and operates entirely online without physical branches across the United States.


Founded

2016

HQ

United StatesMiami, FL

Website

novo.co

Status

Privately held

Customer focus

B2B

Revenue model

Subscription

Valuation

$755M (Nov 2022)

Novo Valuation

Novo is currently valued at $755M, based on its Series B in November 2022.

The $35M round was led by Notable Capital.

Novo's valuation has grown 1.1x from $700M at its Series B in January 2022 to $755M in November 2022, across 2 priced rounds.

Novo valuation by funding round

Novo valuation by funding round
DateStageValuation
Nov 2022Series B$755M
Jan 2022Series B$700M

Novo Funding History

Novo has raised a total of $171M across 5 funding rounds.

Novo's first fundraising round was a $100K pre-seed round in October 2017. The most recent completed round was a $35M Series B in November 2022.

Novo funding rounds

Novo funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Nov 2022Series BNotable Capital (lead)$35M$755MNovo is a Miami-based fintech providing digital banking services tailored for small and medium-sized businesses (SMBs), including checking accounts, payments, and tools to simplify finances. Launched in 2018, it partners with banks like Middlesex Federal Savings for FDIC-insured services and focuses on custom infrastructure to avoid legacy banking constraints. By early 2022, Novo had grown to 150,000 U.S. SMB customers and processed $5 billion in lifetime transactions, projecting $7 billion for 2022. In November 2022, Novo raised $35 million in a Series B extension round led by Notable Capital, aimed at expanding its small business banking platform. This followed prior rounds: a $4.8 million seed in March 2019 led by Crosslink Capital, a $40.7 million Series A in June 2021 led by Valar Ventures (at which point it had surpassed $1 billion in lifetime transactions and 100,000 customers), and a $90 million Series B in January 2022 led by Stripes valuing the company at $700 million post-money. The funds across rounds supported product development like lending, customer acquisition, and infrastructure scaling. Later, in August 2023, Novo secured $125 million in debt financing from Victory Park Capital to offer working capital to SMBs via Novo Funding, bringing total capital raised to about $295.6 million. The company positioned itself for acquisitions amid competition in SMB neobanking.
Jan 2022Series BStripes (lead); BoxGroup; Rainfall Ventures; Crosslink Capital; Valar Ventures$90M$700MNovo is a Miami-based fintech startup offering a digital banking platform tailored for small and medium-sized businesses (SMBs), providing free checking accounts, reserves for expense allocation, and tools to streamline cash flow without traditional banking fees or red tape. Launched in 2018, it targets the 30 million U.S. SMBs underserved by big banks, emphasizing a ground-up built platform with features like modern lending capabilities, faster fund access, and integrations for payments. In January 2022, Novo raised $90 million in a Series B funding round led by Stripes, with participation from existing investors Valar Ventures, Crosslink Capital, Rainfall Ventures, and BoxGroup, bringing total funding to over $135 million. The round valued the company at $700 million (post-money per most sources, though one notes pre-money), following a $40 million Series A six months prior. Funds will expand headcount, customer acquisition, product lines including lending and proprietary tools, and infrastructure to support growth from 24,000 to 150,000 customers. At the time of the round, Novo had achieved significant traction with over 150,000 U.S. SMB customers, $5 billion in lifetime transactions (including $4 billion in 2021), and a run-rate transaction volume exceeding $7 billion entering 2022. The company relocated its headquarters to Miami, earning accolades like CNBC’s and Money Magazine’s best business checking accounts. Investors highlighted Novo's strong retention, growth, and innovative approach to SMB financial services. Stripes partner Saagar Kulkarni, joining the board, praised Novo's de novo products and product-market fit. CEO Michael Rangel emphasized reducing cash flow friction, while CTO Tyler McIntyre focused on short-term capital automation. Miami Mayor Francis Suarez positioned Novo as a fintech leader in Miami's emerging ecosystem.
Jun 2021Series AValar Ventures (lead); BoxGroup; Red Sea Ventures; Rainfall Ventures; Crosslink Capital; Unbound Ventures; Bossa Invest$41M-Novo is a Miami- and New York-based fintech providing a digital banking platform for small businesses, offering free checking accounts, invoicing, cash flow analytics, and other tools, with banking services powered by Middlesex Federal Savings. The company launched in 2018 and by June 2021 had over 100,000 small business customers, having tripled its customer base in the first half of 2021 amid pandemic challenges. On June 16, 2021, Novo raised a $40.7 million Series A round led by Valar Ventures, with participation from Bossa Invest, BoxGroup, Crosslink Capital, Rainfall Ventures, Red Sea Ventures, and Unbound Ventures. The funds were intended to accelerate growth, build a growth team, develop the brand, introduce new features like an app marketplace, expand the team from over 60 employees to more than double in the next year, and enhance the platform for simplifying finances and optimizing cash flow. Novo had surpassed $1 billion in lifetime transactions by the announcement and opened a new office in Miami. The round was among the largest Series A for challenger banks at the time, surpassing Nubank and Current, in a competitive neobank landscape that saw closures like Azlo and Simple. Investors highlighted Novo's custom infrastructure, rapid growth, and potential to expand services post-health crisis. CEO Michael Rangel emphasized unlocking potential in growth and product development, praising Valar Ventures' fintech expertise with portfolio companies like TransferWise and N26. Following the Series A, Novo continued rapid expansion, processing over $4 billion in transactions in 2021 with a run-rate transaction volume entering 2022 at over $7 billion, reaching 150,000 customers. This led to a $90 million Series B in late 2021 or early 2022 led by Stripes (total funding over $135 million, $700 million valuation), followed by a $35 million Series B extension in November 2022 led by Notable Capital and $125 million debt financing in August 2023 from Victory Park Capital, bringing total funding to $295.6 million.
Mar 2019SeedCrosslink Capital (lead); Stanford Law School; RRE Ventures; MAGIC Fund; Red Sea Ventures; Kevin Milden; Hack VC; Rainfall Ventures$5M-Novo raised $4.8 million in a seed round on March 29, 2019, led by Crosslink Capital alongside Hack VC, Kevin Milden, MAGIC Fund, Rainfall Ventures, Red Sea Ventures, and RRE Ventures. The funding aimed to expand its no-fee, FDIC-insured digital banking platform for small businesses, offering business checking accounts with debit card access managed via mobile app, launched in September 2018. Novo positioned itself as an online business banking solution without paperwork or hidden fees, targeting startup founders and small business owners. The round followed a pre-seed of $100,000 in October 2017 led by Techstars to kickstart platform development. Crosslink Capital, known for investments in technology, consumer, and healthcare sectors including Pandora and Ancestry.com, brought expertise to accelerate Novo's growth.
Oct 2017Pre-seedTechstars (lead); Bootstrapped Debt Financing; Silicon Badia; Right Side Capital Management$100K--

Who has invested in Novo?

18 investors have backed Novo across its funding rounds, including Crosslink Capital, Rainfall Ventures, BoxGroup, Valar Ventures, Red Sea Ventures and Techstars.

Lead investors include Notable Capital, Stripes, Valar Ventures, Crosslink Capital and Techstars.


Novo Investors

Investors in Novo by funding rounds participated
InvestorHQRoundsRoleFirst check
Rainfall VenturesUnited StatesLos Angeles, CA3ParticipantMar 2019
Crosslink CapitalUnited StatesSan Francisco, CA3LeadMar 2019
BoxGroupUnited StatesNew York City, NY2ParticipantJun 2021
Red Sea VenturesUnited StatesNew York City, NY2ParticipantMar 2019
Valar VenturesUnited StatesNew York City, NY2LeadJun 2021
Stanford Law SchoolUnited StatesSan Francisco, CA1ParticipantMar 2019
RRE VenturesUnited StatesNew York City, NY1ParticipantMar 2019
MAGIC FundUnited StatesUnited States1ParticipantMar 2019
Kevin MildenUnited StatesSan Jose, CA1ParticipantMar 2019
Bootstrapped Debt FinancingUnited KingdomUnited Kingdom1ParticipantOct 2017
Silicon BadiaUnited StatesNew York City, NY1ParticipantOct 2017
TechstarsUnited StatesBoulder, CO1LeadOct 2017
Right Side Capital ManagementUnited StatesSan Francisco, CA1ParticipantOct 2017

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Novo Competitors

Novo competitors include listed companies like Green Dot and Bank Jago, and private ones like WeBank, Tamara, Neo Financial and DANA.

Public and private companies comparable to Novo
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Green DotUnited StatesUnited StatesPublicly listed$2.1B($12M)$751M0.3x
WeBankChinaShenzhenPrivate--$941M-
TamaraSaudi ArabiaRiyadhPrivate$360M$52M$1B2.8x
Neo FinancialCanadaCalgaryPrivate--$510M-
DANAIndonesiaJakartaPrivate--$1.1B-
Bank JagoIndonesiaIndonesiaPublicly listed$145M-$738M3.7x

Novo Public Comps

Novo is still privately-owned, but its public comps include VersaBank, Green Dot, Bank Jago, Katapult, Liberty Financial Group, Judo Bank, FinVolution Group, Propel Holdings, NICO Holdings and Latitude Financial Services.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
VersaBank$89M-8.5x6.9x--
Green Dot$2.1B($12M)0.4x0.3x(63.9x)4.2x
Bank Jago$145M-5.1x3.7x--
Katapult$292M$215M3.0x2.7x4.0x58.2x
Liberty Financial Group$259M$127M42.5x24.3x86.6x84.9x
Judo Bank$368M-2.2x2.1x--
FinVolution Group$2B$476M0.0x0.1x0.2x0.3x
Propel Holdings$556M$130M1.9x1.5x8.3x6.8x

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Common questions about Novo

When was Novo founded?Novo was founded in 2016.
Where is Novo headquartered?Novo is headquartered in Miami, FL, United States.
Is Novo publicly listed?No, Novo is a private, VC-backed company.
What is Novo's valuation?Novo was last valued at $755M in its Series B in November 2022.
How much funding has Novo raised?Novo has raised $171M across 5 funding rounds.
What was Novo's last funding round?Novo's last funding round was a $35M Series B in November 2022, led by Notable Capital.
Who are Novo's investors?Novo's investors include Rainfall Ventures, Crosslink Capital, BoxGroup, Red Sea Ventures, Valar Ventures, Stanford Law School, RRE Ventures, MAGIC Fund, Kevin Milden, Bootstrapped Debt Financing and 8 others.
Which companies are comparable to Novo?Companies comparable to Novo include Green Dot, WeBank, Tamara, Neo Financial, DANA and Bank Jago.

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