NorthOne raises USD 67 million

Monday 17 October 2022 13:56 CET | News

NorthOne has raised USD 67 million in Series B funding, with participation from new and existing investors. 

The investors include Battery Ventures, Don Griffith, Drew Brees, Ferst Capital Partners, FinTLV, Next Play Capital, Operator Stack, Redpoint Ventures, Tencent, and Tom Williams, bringing NorthOne’s fundraising total to USD 90.3 million raised since launch.

NorthOne is poised to further expand the reach of its business banking and financial management platform across all sectors of the small business community.

With this funding, NorthOne will build new working capital and credit products, as well as faster and more convenient payment solutions for busy entrepreneurs. It will also continue to expand on the dozens of integrations already offered. By connecting all the dots of the financial back office, NorthOne can help business owners understand how money moves through their business and take control of their economic future.

NorthOne is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank, N.A., Member FDIC. It was founded in 2016 to serve traditional businesses on main streets across America. From construction workers to barbers, mechanics to restaurant owners, these businesses make up the majority of the country’s 33 million small businesses that have been deeply underserved by financial institutions for decades.

More about NorthOne

In 2021, NorthOne has partnered with The Bancorp Bank, Member FDIC, to provide banking services to NorthOne’s customer base, and with Galileo Technologies. Through its partnership with The Bancorp Bank, Member FDIC, current and new NorthOne customers have access to updated account features, including deposit funds from checks through the NorthOne mobile app and invoicing.

NorthOne raised USD 67 million in Series B funding, with participation from new and existing investors.

Over the years, NorthOne has worked to offer more than banking services to its customers. It added products that would also help them simplify their financial operations by connecting the data layer between accounting, receivables, payables, lending, payroll and the bank account ledger.

NorthOne is also among the financial institutions that have cut overdraft fees in 2021 because overdraft fees had been understood as detrimental, becoming more of an industry and profit center rather than being a deterrent and cost recovery mechanism as intended. Because of that, small businesses can often lose a costly percentage of revenues to those fees.

NorthOne business banking

As mentioned before, NorthOne is not an actual bank, so banking services are provided by The Bancorp Bank and deposits are insured up to USD 250,000 by the Federal Deposit Insurance Corp. NorthOne only offers one product: its business deposit account.

For a USD 10 monthly fee, NorthOne offers unlimited fee-free transactions, fee-free in-network ATM access, and a variety of digital tools. It’s important to note that although many online competitors offer free business checking accounts, or accounts with waivable monthly fees, NorthOne’s monthly fee cannot be waived.

With unlimited sub-accounts (called Envelopes), plus app integrations, NorthOne is well-suited for freelancers, contractors or self-employed business owners who need to separate their personal and business finances.

More: Link

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Keywords: funding, banks, digitalisation, SMEs, digital banking
Categories: Banking & Fintech
Companies: NorthOne
Countries: United States
This article is part of category

Banking & Fintech


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