June 29, 2011
There is definitely money to be made in the mobile payment business and to prove it, venture capitalists just put $100 million dollars more into Square in a Series C round of funding led by Kleiner Perkins Caufield & Byers, according to a report in the WSJ.
Banks, financial institutions and maybe even more established online payment options like Google, Intuit and PayPal see the eight month old startup, Square, as a threat, as they have quickly drawn the attention of everyone looking at the mobile payments space. So it makes sense that Square would want to keep the peddle to the metal as they race to gain market share and brand recognition. A recent partnership with Apple has had to help as Square devices are being distributed now in Apple Stores.
Lead by Twitter co-founder Jack Dorsey, Square has increased its value since it’s last round of funding very quickly. Raising its series B round in early January, the company was valued at $240 million. Only six months later they are worth 4 times that value. That’s pretty impressive or ridiculous, depending on if you think we’re in a bubble or not. But one thing is for sure: by taking a percentage of every transaction, which basically turned PayPal and a number of other companies into somewhat of a mint overnight, Square has a business model that everyone wants a part of.
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