Square Raises $200 Million in New Funding

Square has raised $200 million in new funding from Citi Ventures, Rizvi Traverse Management, and Starbucks Coffee Company.

One year ago, Square had approximately 150 employees and processed over $1 billion in payments on an annualized basis. Today, Square has over 400 employees and is processing over $8 billion in payments on an annualized basis.

The funding round values Square at $3.25 billion. In an indirect way, the valuation and Square's success shows why mobile service providers believe "payments" could be a large and substantial business.


The issue is whether it can become a large and substantial business for service providers.