SME challenger bank NorthOne raises $21m Series A
New York-based challenger bank NorthOne has raised $21 million in a Series A funding round led by Battery Ventures.
NorthOne has raised $23.3m so far
The fresh funding brings the total raised by the 2016-founded challenger to $23.3 million.
NorthOne targets small and medium-sized enterprises (SMEs) in the US, with a particular focus on family businesses like hairdressers and bakers.
“Every single one of these small businesses needs a bank account but business banking often acts as a hidden tax on small businesses,” the challenger writes on its website.
Among the bank’s promised features are three-minute account creation, customisable sub-accounts for taxes, and real-time insights into revenue and expenses.
NorthOne launched in late August 2019 and claims to have achieved 130% month-on-month growth. It plans to use the new funding to build out a customer acquisition strategy and grow its internal teams.
The challenger is partnered with Radius Bank, which underpins its services via a Banking as a Service (BaaS) platform.
The NorthOne Mastercard debit card is issued by Radius Bank pursuant to the challenger gaining its own licence.
