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Union Square Ventures leads $5m round in Dwolla; Marc Ecko, Paige Craig participate

February 7, 2012 by

Update 9:25 a.m. – Read the full story: Dwolla raises $5m Series B round led by Union Square Ventures (Video)

In January, Betabeat cited un-named sources to report that Dwolla had raised around $10 million in a Series B round led by Union Square Ventures of New York. Dwolla, a Des Moines-based pay online cash transfer startup, responded quickly but passively on Twitter with allusions to songs titled “Rumors.” Today, it’s a different tune. Business Insider has the online scoop – the Des Moines Register has it in print – that Dwolla has raised a $5 million Series B round led by Union Square Ventures, a venture capital firm who among its notable investments touts Twitter, Zynga, foursquare and Etsy.

Also participating in the round was Village Ventures and Thrive Capital, both of New York, Artists & Instigators of West Conshohocken, Penn. (Marc Eckō‘s venture innovation company) and angel investor Paige Craig of Los Angeles-based Betterworks.

“The investment is all about getting the product out nationally,” Milne told Business Insider. “Union Square Ventures can help build the brand and build the beginning of something we think will be really, really badass.

Business Insider:Dwolla Raises $5 Million From Union Square Ventures To Continue Building Its (Nearly) Fee-Free Payment Network

To date, this brings Dwolla to a total amount raised of more than $6 million. In December 2010, it raised its Series A round from investors and strategic partners in Iowa, The Veridian Group and The Members Group, both of Iowa.

Besides the obvious heavy investment coming from New York, here are few early notes on the investors:

  • The regular Silicon Prairie News audience may remember that Eckō and Craig spoke at two of our events in 2011, Big Omaha and Thinc Iowa respectively. Dwolla co-founder and CEO attended Big Omaha and was a part of the speaker lineup at Thinc Iowa, as well.
  • When it raised its Series A round in December 2010, it had also announced the addition of Village Ventures managing general partner Matt Harris to its advisory board. Today, his firm comes on board as an investor.
  • Thrive Capital founder Josh Kushner also has a connection to Betabeat, the outlet that originally broke the Dwolla funding story. From Betabeat’s disclosure page: “Thrive Capital is invested in several start-up companies. Josh Kushner, a Thrive principal, is also part-owner of Observer Media Group, which owns Betabeat. Betabeat has no affiliation with Thrive Capital and the views expressed in Betabeat do not necessarily reflect the opinions of Thrive Capital or its principals.” 

We have a full story in the works on Dwolla’s Series B round. Stay tuned.

Update 9:25 a.m. – Read the full story: Dwolla raises $5m Series B round led by Union Square Ventures (Video)

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