Square is preparing to raise another round of funding that would put them at a $4 billion valuation according to sources with AllThingsD. This would quadruple Square’s valuation since 10 months ago when they raised $100 million, putting them at a $1 billion valuation. Square was founded by Twitter co-founder Jack Dorsey and the service focuses on accepting credit card payments through smartphones and tablets.
The rumors about Square raising a new round of funding started when Owen Thomas noticed Square CEO Jack Dorsey and Square COO Keith Rabois were in Boston and Baltimore where many institutional investors are based. Thomas called Legg Mason and they confirmed that they were looking into Square.
Square raised a total of $137 million in funding from KPCB, Tiger Global, Sequoia Capital, Khosla Ventures, Visa, and Richard Branson. Square is processing $4 billion in annual transactions as of last month and they charge 2.75% per swiped transaction and 3.5% plus 15 cents per keyed-in transaction.