Despite the best hopes of companies and investors across the industry, the fintech world is still suffering through a depression. With major companies conducting sweeping layoffs and fintech stocks down 47% compared to last year, it’s hard to find any part of the industry untouched by the continuing downturn.
But don’t count fintechs out just yet. Despite the ongoing market tribulations, some companies are seeing promising signs for the future. As an example, one need look no further than Florida neobank Novo, which specializes in business checking services for small and medium-sized businesses (SMBs). Following a $35 million continuation of its Series B fundraising, the fintech platform has reached a valuation of $720 million, $110 million greater than its high water mark in January of this year. Clearly, there is still a great deal of investor interest in new SMB-focused fintech services.
“Banks have largely driven a one-size-fits-all product to very different types of businesses and forced that square peg through the round hole for many years,” said Co-Founder and Chief Executive Officer Michael Rangel in an interview about Novo’s key role in the marketplace. “We put that on its head and allow small businesses to customize their own products by plugging in the tools used to run the business right into the checking account.”
