Dwolla, a US-based developer of a web platform for cash payment, has raised $16.5m in its series C round led by venture capital firm Andreessen Horowitz and its original investors.
These other investors are Union Square Ventures, Village Ventures, and Thrive Capital.
Ben Milne, Dwolla’s founder, in a blog post said: “When I showed Jeff Jordan FiSync [Dwolla’s real-time application for financial institutions and service providers], there was a ‘holy shit’ moment. That made me happier than I can describe.”
Jeff Jordan, a partner at Andreessen Horowitz, had pushed online auction company EBay to acquire PayPal in 2002 and later headed the online payments firm.
Scott Weiss, a partner at Andreessen Horowitz, is joining Dwolla’s board.
In February last year, Dwolla secured $5m in its B round from a pool of investors including BetterWorks and its chief executive Paige Craig.
Also participating were private equity firm Thrive Capital and venture capital firms Artists & Instigators, Village Ventures and Union Square Ventures.
Dwolla’s series A round was completed in November 2010, raising $1m from the Veridian Credit Union and followed a $250,000 angel round the year before.