NorthOne, a challenger bank targeting small businesses, freelancers and startup companies, has raised $21 million in Series A funding led by Battery Ventures. 

Redpoint Ventures and investor Tom Williams will participate in the funding round. 

NorthOne plans to use the funding to boost its marketing efforts and accelerate its customer acquisition programs. The funding will also be used to hire additional staff in product and software engineering as well as expand its customer service team. 

"We created NorthOne to serve businesses that are often underserved by big banks," Eytan Bensoussan, co-founder and CEO of NorthOne, said in a company release. "Having grown up in a family of small business owners myself, I know firsthand what to expect when it comes to small business banking."

NorthOne, which launched in August 2019, offers FDIC-insured accounts through a partnership with Radius Bank. It allows customers to withdraw funds or make deposits at 300,000 ATMs around the country.

The bank offers dedicated sub-accounts to set aside funds for payroll, rent, taxes or other expenses as well as account integration with accounting, e-commerce and expense applications like Quickbooks, Xero, Expensify, Freshbooks, Wave and Shopify. 

Cover image: NorthOne