Novo, a digital banking platform for small businesses, hit a $700 million valuation after raising $90 million in a series B financing round.
The Miami-based fintech reports it has processed more than $5 billion in transactions since its founding in 2016, including $4 billion in 2021 alone.
Novo will use the new funding to build out its lending capabilities, as well as propriety products that enable businesses to send and receive money quicker.
"In the coming months and years, our small business customers will be able to access their funds faster than they ever thought possible," said co-founder and CEO Michael Rangel.
The company's latest financing round was led by Stripes, a New York firm that invests in consumer businesses, with participation from existing investors CrossLink Capital; Rainfall Ventures; BoxGroup; and Valar Ventures, a New York venture capital firm backed by billionaire tech investor Peter Thiel.
Last year, Novo secured $40 million from investors, bringing its total funding to more than $130 million.
Novo's mobile banking platform supports a range of digital banking features for businesses, including free checking accounts, payment transfers, budgeting, invoicing and e-commerce tracking.
Small businesses are more likely to be overlooked by large banks – a trend highlighted early in the pandemic, when ventures of all sizes vied for Paycheck Protection Program loans – making it difficult to access basic financial services. Novo reports it stands out because it built its products specifically for smaller firms, with products that track e-commerce sales, cash flow insights, invoicing, cash flow insights and more.
Last year, the firm moved its headquarters from New York City to Miami, with plans to scale in the area. It's among the wave of fintech, finance and venture capital firms that moved to South Florida last year, a trend that accelerated after Miami Mayor Francis Suarez kicked off his viral campaign to recruit new tech and cryptocurrency ventures to the the city.
"After going to school in Miami, [the founders] left to build their company elsewhere, but came back last year to an ecosystem that had changed dramatically," Suarez said in a statement. "Novo is one of the quintessential success stories of the Miami Movement."
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