Novo raises $4.8M in seed funding for mobile small business banking

Novo, a startup mobile bank aimed at small business, has said it raised $4.8 million in venture seed financing led by Crosslink Capital, along with Red Sea Ventures and RRE.

Other investors in the funding round include Hack VC, Rainfall and the Stanford Law School Venture Fund, according to a company press release.

Novo co-founder and CEO Michael Rangel said the company will use the funding to focus on onboarding customers who have been on the waitlist; to create strategic partnerships with other value-added services; and to add new members to the team.

Launched in September, Novo provides a free business checking account and debit card, which are managed through a mobile app.

Account application takes 10 minutes, and the bank, which works with FDIC-insured community banking partner Middlesex Federal Savings, does not charge hidden fees or require a minimum balance.

The bank also coordinates with Stripe, Slack and Zapier to provide customers with insights into their financial health.

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