US-based digital challenger bank NorthOne has raised $21m in a Series A funding round to boost its marketing efforts and accelerate customer acquisition programmes.
The funding round was led by Battery Ventures and joined by Redpoint Ventures and Tom Williams.
The latest funding round brings the total capital raised by the bank to $23.3m.
The digital bank, which was formed in 2016, intends to use the money to hire additional staff in product and software engineering as well as expand its customer service team.
NorthOne CEO Eytan Bensoussan said: “We created NorthOne to serve businesses that are often underserved by big banks.
“Having grown up in a family of small business owners myself, I know first-hand what to expect when it comes to small business banking.
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By GlobalData“With this funding, NorthOne will be able to continue to develop solutions that simplify the most painful part of managing a small business, its finances.”
The bank claimed that there are 30 million small businesses in the US, of which 1% applied for a NorthOne account in the second half of 2019.
According to the bank, these businesses account for 50% of the country’s workforce and contribute $6trn to the economy each year.
Launched in 2016, NorthOne and Radius Bank partnered to offer FDIC-insured business checking account to its clients and a network of 300,000 ATMs for cash and cheque deposit.
