Fintech startup raises one of the largest Series A rounds in Western Canada amidst unprecedented year
Neo Financial (Neo), a technology company created by two of the co-founders of SkipTheDishes, announced it has completed a $25 million Series A fundraising round alongside $25 million in debt facility financing, bringing this funding round total to $50 million CAD. Amidst an unprecedented year, this raise marks one of the largest Series A funding rounds in Western Canada.
@Neo_Financial announces $50M Series A raise
Valar Ventures, a New York-based venture capital firm, led the funding round. Known for its successful investments in the financial technology space, Valar Ventures was started by James Fitzgerald, Andrew McCormack, and PayPal co-founder Peter Thiel. Valar Ventures has previously backed several prominent companies including Xero, N26, Transferwise, and more.
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Other Series A backers included Tobi Lutke, the CEO and founder of Shopify; Golden Ventures; Inovia Capital; Thomvest; Afore Capital; Maple VC; FJ Labs; and District Ventures, the venture firm founded by Arlene Dickinson from Dragon’s Den. Neo also closed a $25 million debt facility with financial partner, ATB Financial.
“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,” says Neo co-founder and CEO, Andrew Chau. “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.”
“We’re excited to partner with the team building Neo Financial,” said Andrew McCormack, a founding partner of Valar Ventures. “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.”
