The past year hasn't been easy for financial technology startups. But one South Florida is defying the odds — and attracting attention from Forbes.
Miami-based Novo is among the top fintech startups in the country, according to Forbes' new Fintech 50 list. It was the only Florida-based company to make the list and one of a handful headquartered outside of California or New York.
Novo is behind a mobile banking platform that supports a range of digital features for small businesses, entrepreneurs and freelancers. After launching in New York City in 2016, the company moved its headquarters to the Magic City, the hometown of co-founder and CEO Michael Rangel.
While other fintechs pull back, Novo is expanding. The startup recently leased the entire 22nd floor of 801 Brickell Ave. in the Brickell Financial District. The 18,450-square-foot-space, still under construction, will be a global headquarters for Novo’s team of more than 300 employees. About 100 of those workers – including 40 in Florida – are based in the U.S.
While there are plenty of fintech competitors on the market, Rangel said Novo stands out because of its focus on small businesses with between $50,000 and $250,000 in annual sales.
Failures, valuation dips and layoffs have decimated many fintech ventures over the last year, making it more difficult for those businesses to attract capital. That's clear from the numbers: Venture capital funding for fintech businesses dropped to $75 billion in 2022, down from $140 billion the previous year, CB Insights reports.
"That explains why our 2023 list has only 19 companies that have never made the Fintech 50 before, down from 25 newcomers last year," Forbes reported.
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