Square Raises $100 Million Round At $1+ Billion Valuation, Led By Kleiner Perkins. Square Raising New Round, Joining Billion Dollar Valuation Club. There are a bevy of startups in the process of raising big rounds of capital at billion dollar or higher valuations – something that was a rare occurrence even a few months ago. We’re tracking most of these deals (and have written about the ones we’ve confirmed). Now, we’ve confirmed via multiple sources, is payment startup Square’s turn. The company is raising $50 million or more, says sources, at a valuation that will likely be north of $1 billion.
It’s still fairly early in the process, though, and the company is rumored to be meeting with additional venture and private equity firms to either fill out the round or encourage a higher valuation. But at least one term sheet has been received by the company, says one source. COO Keith Rabois was in a particularly chipper mood when he sat down with me two weeks ago at TechCrunch Disrupt to talk about how Square is doing. Which isn’t surprising. Square’s Disruptive New iPad Payments Service Will Replace Cash Registers. Mobile payments startup Square is announcing big numbers today—500,000 Square card readers shipped, 1 million Square transactions in May, and the startup is now processing $3 million in mobile payments per day.
Clearly the company is on a roll in terms of traction and usage. And CEO Jack Dorsey is also revealing the next generation of Square. And Square is about to get a whole lot more disruptive. Today, Dorsey is revealing Square Register, a high-powered point of sale replacement for cash registers and point of sale terminals. And the company is taking it one step further for consumers by launching the Square Card Case, a way for purchasers to access a local merchants’ goods, prices, location, loyalty card and more. For background, Square offers an iPhone, Android and iPad app which allows merchants to process and manage credit card transactions with a handy little credit card swiping device that plugs into the headset/microphone jack. Square Register For The iPad. Square Now Processing Millions Of Dollars In Mobile Transactions Every Week. After ten months of a private pilot limited to only 50,000 users, Square has finally opened its doors to the public.
The brainchild of Twitter co-founder Jack Dorsey and Jim McKelvey, Square was unveiled last December as a small credit card reader that could turn any iPhone into a mobile cash register. The startup has since unveiled apps for the iPad, Android and iPhone. And Dorsey brought on PayPal and Slide veteran Keith Rabois as General Manager in August. As Square exits its pilot, the startup is hitting an impressive milestone: Square is now processing millions of dollars in mobile transactions every week. So where is Square seeing the most traction? Without a doubt, small businesses, independent workers and merchants comprise most of Square’s rapidly growing user base. The technology only requires its tiny credit card scanner that fits into your audio jack and Square’s app.
Rabois tells me that that Square is the “PayPal for the real world.” Photo Credit/Dave Getzschman. Square. Jack Dorsey’s Square is trying to graduate from cool party trick to global game changer. So far, the mobile payments service is far from the mark but it’s making progress. Since its launch, Square has delivered roughly 50,000 devices, according to Dorsey. The founder of Twitter has been a diligent ambassador, traveling to several parties and conferences this year (like last week’s TechCrunch Disrupt) to demo Square and answer questions on security, usability and how the tiny device will make money. Dorsey may seem like the patient salesman but he has serious ambitions for Square that include global domination.
In its current form, Square caters to a limited market. For the uninitiated, Square turns your mobile device into a credit card scanner, using a reader that fits into your audio jack and Square software. Despite all the potential, the future of Square is uncertain, given the fiercely competitive world of mobile payments. “The next obvious move for us is Canada.