Total amount raised
$51.4 Million
Latest funding date
2/1/2018
Location
Dwolla has successfully raised funds over 9 rounds, with notable investors such as Union Square Ventures and Next Level Ventures backing the company. The latest funding round was a "Venture - Series Unknown," highlighting the ongoing interest in Dwolla's innovative payment solutions.
Keep reading to explore the intricacies of Dwolla's fundraising journey and the investors supporting this fintech platform.
What Is Dwolla?
Dwolla, a fintech company based in Des Moines, Iowa, specializes in sophisticated account-to-account payment solutions. Founded in 2008, the company operates in various sectors, including Developer APIs, Enterprise Software, Financial Services, FinTech, Payments, and Software.
With a team of 51-100 employees, Dwolla has become a trusted partner for over 400 businesses, offering streamlined payment methods such as Instant Payments, Same Day ACH, and Standard ACH. The platform is designed to enhance payment speed, efficiency, and security across multiple industries, including Insurance, Lending, Real Estate, Healthcare, and Manufacturing.
How Much Funding Has Dwolla Raised?
- Round Name: Angel
- Amount Raised: USD 250,000
- Date: November 2009
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial funding to develop the core technology and launch the platform.
- Round Name: Grant
- Amount Raised: USD 55,000
- Date: March 2010
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support early-stage development and operational costs.
- Round Name: Series A
- Amount Raised: USD 1,000,000
- Date: November 2010
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and expand the team.
- Round Name: Series B
- Amount Raised: USD 5,000,000
- Date: February 2012
- Lead Investors: Union Square Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance product features and increase market penetration.
- Round Name: Series C
- Amount Raised: USD 16,500,000
- Date: May 2013
- Lead Investors: Andreessen Horowitz
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and expand into new markets.
- Round Name: Series D
- Amount Raised: USD 9,700,000
- Date: September 2014
- Lead Investors: CME Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and enhance service offerings.
- Round Name: Series Unknown
- Amount Raised: USD 6,850,000
- Date: January 2017
- Lead Investors: Foundry Group, Union Square Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support product innovation and market expansion.
- Round Name: Series Unknown
- Amount Raised: USD 12,000,000
- Date: February 2018
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the platform's capabilities and expand the customer base.
- Round Name: Series Unknown
- Amount Raised: USD 21,000,000
- Date: July 2021
- Lead Investors: Foundry Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth initiatives, particularly in international payments and product enhancements.
Total Amount Raised: USD 72,355,000. Current Valuation: Not publicly disclosed.
Key Investors
- Foundry Group
- Details: Foundry Group is a venture capital firm that led multiple funding rounds for Dwolla, including the $21 million round in 2021. The firm is known for investing in early-stage technology companies.
- Investment Focus Areas: Technology, Software, FinTech
- Notable Investments: SendGrid, Fitbit, Zynga
- Union Square Ventures
- Details: Union Square Ventures is a New York-based venture capital firm that has invested in several of Dwolla's funding rounds. The firm is known for its focus on internet services and technology companies.
- Investment Focus Areas: Internet Services, Technology, FinTech
- Notable Investments: Twitter, Etsy, Coinbase
- Andreessen Horowitz
- Details: Andreessen Horowitz is a Silicon Valley-based venture capital firm that participated in Dwolla's Series C round. The firm is renowned for its investments in high-growth technology companies.
- Investment Focus Areas: Technology, Software, FinTech
- Notable Investments: Facebook, Airbnb, Slack
- CME Ventures
- Details: CME Ventures is the venture capital arm of CME Group, focusing on strategic investments in technology companies. They led Dwolla's Series D round.
- Investment Focus Areas: Financial Technology, Data Analytics, Blockchain
- Notable Investments: Digital Asset Holdings, Nervana Systems, Orbital Insight
- Next Level Ventures
- Details: Next Level Ventures is an Iowa-based venture capital firm that has invested in multiple rounds for Dwolla. The firm focuses on high-growth companies in Iowa.
- Investment Focus Areas: Technology, Healthcare, Financial Services
- Notable Investments: Workiva, Pear Deck, VIDA Diagnostics
What's Next for Dwolla?
Dwolla's future looks promising as it aims to expand its international footprint, particularly in markets like Canada, the U.K., and Australia. The company is also focused on enhancing its API to offer more customizable and efficient payment solutions, which could significantly increase its market share in the growing payments industry.
With the recent $21 million funding round, Dwolla is well-positioned to pursue further fundraising opportunities to support its ambitious growth plans. The company may also explore strategic acquisitions to enhance its technology capabilities and market reach.
However, Dwolla will face challenges such as navigating regulatory requirements in new markets and maintaining a competitive edge against larger players like Stripe. Ensuring the scalability and security of its platform will be crucial as it continues to grow and innovate in the fintech space.
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