It’s the third time Peter Thiel’s New York-based Valar has led a fundraising for Neo, which offers a no-fee Mastercard, bank accounts, and investments primarily through a mobile app. The company says it has gathered more than 1 million customers since it launched in 2019.
New investors in Neo include San Francisco-based Tribe Capital Partners, Blank Ventures, Gaingels, and Knollwood Investment Advisory. Existing investors Maple VC and Altos Ventures also participated in this round.
Since its last funding round in September 2021, Neo has nearly doubled in size to 650 employees from 350, with plans to add another 100 in 2022, and increased the number of retailer partners on its rewards platform to 7,000 from 4,000.
By the end of 2022, it plans to enter the mortgage market with loans done through partnerships with financial institutions including Home Trust and First National Financial, two non-bank lenders in Canada.
In April 2022, Neo launched a low-fee wealth management product by partnering with OneVest Management, a Canada-based firm that’s registered as a portfolio manager. Several Canadian startups in the past two years have become unicorns, the term for new companies reaching a USD 1 billion valuation, including Freshbooks, Clio, Visier, and Clearco, Bloomberg concludes.
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