Dwolla Nets $16.5 Million in Funding from Andreessen Firm
May 6, 2013
Online payment network Dwolla said it has secured a $16.5 million round of financing led by Internet pioneer Mark Andreessen’s venture capital firm, Andreessen Horowitz. Des Moines, Iowa-based Dwolla unveiled news of the Series C funding on its corporate blog last week along with news that the company will open a San Francisco location headed up by COO Charise Flynn. The cash infusion will be used to staff up the new office (along with expanding headcount in the company’s Des Moines, New York, Kansas City and Omaha offices), support business development and add to its line of consumer-facing products.
And, as for the West Coast location, CEO Ben Milne said it’s not about abandoning its Midwest roots for the glamour of Silicon Valley.
“I don’t believe there is an ‘us’ or a ‘them.’ This isn’t Biggie vs. Tupac,” he said. “I only believe in a greater opportunity that connects the Midwest, East and West coasts and shares the assets and talents needed to build something that has never existed.”
Milne noted that Dwolla now processes more than $1 billion on an annualized basis but, given more than $600 trillion in total U.S. payments alone, “one billion dollars is a drop in a very big bucket.”