Dwolla Nets $5 Million in Latest Funding Round

Feb. 9, 2012

Dwolla, the cash-based payment network based in Des Moines, Iowa, has secured a $5 million round of funding led by Union Square Ventures with additional participation from Village Ventures, Thrive Capital and others. According to published reports, Dwolla CEO Ben Milne acknowledged the company could have leveraged intense investor interest into a larger funding round, but intentionally kept it at a level he felt more comfortable with. “We knew exactly how much we wanted to raise and had an idea of who we wanted to raise it from,” Milne told the San Francisco Chronicle . “We wanted a partner to help us in the financial space—that’s Village Ventures.  We wanted someone to help us with APIs—that’s USV.  We wanted someone for marketing and growth and that’s Thrive. The investment is all about getting the product out nationally. Union Square Ventures can help build the brand and build the beginning of something we think will be really, really badass.” Dwolla has 80,000 account holders and the company processes more than $1 million in transactions daily.