Look at All Those Zeros: Square Raises $100 Million at $1 Billion Valuation
That’s a lot of zeros.
Square, the mobile payments provider that is trying to redefine the way consumers spend money and the way merchants charge for it, has secured $100 million in a third round of funding, led by new Square investor Kleiner Perkins Caufield & Byers with participation from Tiger Global Management.
The extraordinarily large round comes at a $1 billion valuation, the WSJ reports.
I guess it’s fitting that a company whose primary business is accepting credit cards can practically print cash.
Only seven months ago, Square raised $27.5 million round in a second round of funding. Now that looks like pocket change.
Since then, the San Francisco-based company has expanded significantly.
It has quickly evolved beyond its original model, which consisted of handing out magnetic swipe readers that allowed users to accept payments via their mobile phones. That business was met with warm reception by small business owners, ranging from individuals at a garage sale to musicians selling CDs at a concert.
Last month, it continued its vision by rolling out an iPad-based solution for small retailers and merchants who were looking for a way to replace the clunky register on their counter, and also a new way to track inventory and manage a menu.
An accompanying mobile app enables individuals to open a tab at their favorite local merchants, store digital receipts and browse nearby directory and menu listings.
The words that Square’s CEO Jack Dorsey, who is also the head of product at Twitter, said earlier this month at D9 ring more true now than ever.
While on stage, All Things D’s Kara Swisher asked Dorsey: “Want to tell me about your IPO?”
Dorsey answered: “Which one?”
Square might still need every dime it can get to fend off the competition, which includes Google among many others.
As part of the financing, Mary Meeker, a partner at KPCB, will join the company’s board.