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Novo, a neobank for SMBs, banks $41M


SMB
Novo
Valar Ventures
Crosslink Capital
Rainfall Ventures
Red Sea Ventures
BoxGroup
Mercury
Brex
Hatch
Anna, Tide, Viva Wallet
Amazon
BBVA
PNC


Lili
Michael Rangel —
Novo
Azlo
Andrew McCormack
Peter Thiel


Azloans

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New York
Miami
U.S.


Series

Positivity     47.00%   
   Negativity   53.00%
The New York Times
SOURCE: https://techcrunch.com/2021/06/16/novo-a-neobank-for-smbs-banks-41m/
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Summary

They include staying with traditional banks (which are starting to add an increasing number of services and perks to retain small business customers), as well as a variety of fintechs — other neobanks, like Novo — that are building banking and related financial tools to cater to startups and other small businesses.Just doing a quick search, some of the others targeting the sector include Rho, NorthOne, Lili, Mercury, Brex, Hatch, Anna, Tide, Viva Wallet, Open, and many more (and you could argue also players like Amazon, offering other money management and spending tools similar to what neobanks are providing). That led to a significant number of users migrating to other services, and Novo got a huge windfall out of that, too.In the last six months, Novo grew four-fold, and Rangel attributed a lot of that to ex-Azloans looking for a new home.The fact that there are so many SMB banking providers out there might mean competition, but it also means fragmentation, and so if a startup emerges that seems to be catching on, it’s going to catch something else, too: the eye of investors.“The ability of the Novo team to grow the company rapidly during a year where businesses have faced unprecedented challenges is impressive,” said Andrew McCormack, founding partner at Valar Ventures, the firm co-founded by Peter Thiel, another big figure in fintech.

As said here by Ingrid Lunden