Home Funding Neo Financial secures CAD$ 50M in Series A funding round

Neo Financial secures CAD$ 50M in Series A funding round

Neo Financial, a Canada based technology company announced it has completed a $25 million Series A fundraising round along with $25 million in debt facility financing, bringing this funding round total to $50 million CAD held in December 2020. This raise marks one of the biggest Series A funding rounds in Western Canada. Neo offers Neo Savings, a high-interest savings account which earns members up to 30 times more than the Big Five banks, and the Neo MasterCard and Rewards program which joins spending and savings together on one platform.

Valar Ventures, a New York-based venture capital firm, led the funding round. It is known for its successful investments in the financial technology space. The firm was started by James Fitzgerald, Andrew McCormack, and PayPal co-founder Peter Thiel. Valar Ventures has previously funded several prominent companies including Xero, N26, Transferwise, and more.

What Neo Financial has to say

Neo co-founder and CEO, Andrew Chau said, “With the tremendous support of our investors, particularly through the challenging circumstances of COVID-19, we’re accelerating the development of Neo’s product offerings and expansion across Canada”.

“Now more than ever we are seeing the need for digital transformation in industries like banking, and Neo is at the forefront of that in Canada. Our team has set out to not only build new technology that challenges Canada’s existing financial sector but also drives a cultural shift in how Canadians bank”, he also added.

What Valar Ventures has to say

Andrew McCormack, a founding partner of Valar Ventures said, “We’re excited to partner with the team building Neo Financial. They are building a powerful technology platform which provides the modern banking services consumers around the world have come to expect – and are still not getting from the traditional banks in Canada. 

“We see massive opportunities for new entrants in the banking industry globally, particularly in places dominated by a few old banks that have gotten too comfortable and forgotten how to innovate. Neo’s unique approach will have a significant impact for consumers all over Canada who are ready for a financial platform that works for them”, he also added.

About Neo Financial

Neo Financial
Neo Financial

Neo Financial (Neo) is a technology company which works on building a better financial experience for all Canadians. The startup was founded in 2019 by co-founders of SkipTheDishes. Neo is re-imagining spending, savings and rewards by using technology to make finances easier and create rewarding experiences for all Canadians.

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