Square Inc. is a mobile payments service company that was founded by Twitter co-founder and chairman Jack Dorsey. Square has raised $27.5 million in a new round of funding led by Sequoia Capital. This gives Square a $240 million valuation. In Square’s last round of funding, the company had a $45 million valuation.
Sequoia Capital partner Roelof Botha will be joining Square’s board of directors. Square’s previous investor was Khosla Ventures, which led a $10 million round of funding into the company. Square developed technology that lets people swipe credit cards on iPhones, iPads, and Androids.
Square decided to raise the funding because they want to build their team. The company currently has 64 employees including contractors. ?We want to accelerate word of mouth (about Square) and make sure we have enough systems in place,” said Dorsey in an interview with The Wall Street Journal.
About 30,000-50,000 businesses have signed up with Square so far. Square makes money by charging a fee for each transaction. The fee is cheaper than what credit card companies and other payment system services charge.