Square Raises $100 Million Funding

June 29th, 2011 at 12:47 pm

Interest in tech companies among investors have picked up quite recently. News about recent IPO’s of companies like LinkedIn have gathered a lot of interest among the investing public. But it may not only be through going public that tech companies may be catching interest. They also seem to get the eye of more established investors willing to put their money on them. With this surge of interest, it is no wonder that mobile payment start-up Square has been able to recently acquire $100 million in a new round of financing.

Square recently announced that it has received $100 million from venture capital firm Kleiner Perkins Caufield & Beyers. This recent round of financing has enable the start-up to quadruple its value in just 6 months. The last time, Square also got $27.5 million from venture capitalists led by Sequoia Capital that increased the company’s value to $240 million. The recent round of funding gives the mobile payments company a staggering $1 billion valuation.

Investors may have seen something about Square that makes it quite attractive enough to pour in millions in venture capital. To think that not all start-ups can justify how they are valued, there are some like Square that might just be worth as much as their perceived value. Credit this to the rapidly growing world of mobile payments.

Mobile payment technology will allow people to purchase goods and even accept payments using their mobile phone. As more and more people with mobile phones embrace this new technology, it may revolutionize the way people may purchase things in the future. And at present, mobile payments are enjoying some astounding growth, with mobile payment transactions being expected to reach $245 billion in 2014, according to market research firm Gartner.


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