ImpactAlpha, January 12 — Miami-based neobank Novo provides bank accounts without fees or minimum balances for approximately 150,000 small businesses owners, entrepreneurs and freelancers in the U.S, and even refunds any ATM fees.
Novo says it has facilitated more than $5 billion in transactions since 2018, and more than $4 billion last year alone.
“The pandemic was a catalyst for our growth,” said Novo’s Michel Rangel. Its next target: big banks. “They are the only ones we are concerned with because they own 99% of the market.”
New York-based Stripes led the Series B round, with participation from Valar Ventures, Crosslink Capital, Rainfall Ventures and BoxGroup.
“Despite being the heart of the U.S. economy, the more than 30 million small businesses in the U.S. have always struggled to access even basic financial services as they are constantly overlooked by the big banks,” said Stripes’ Saagar Kulkarni.