Private Company Valuations: Square, Inc.
Posted By Justin Byers, Lead Business Intelligence Analyst on January 13, 2010
Everyone has heard of Twitter, but have you heard of Square, Inc.? Square, Inc. was co-founded by Jack Dorsey, a co-founder of Twitter, and the company first launched its services to the public in late Q4 2009. This week we are going to take a look at their first round of financing.
Square, Inc. was founded in San Francisco, California. The company provides a software application and card reader that plugs into a mobile device. The reader allows the user to swipe a credit card (or debit card) through it to process a payment transaction via a mobile device. The company has stated that it has raised $10 MM from Khosla Ventures. The Deal Terms of this Series A round were:
| Filing Date | 11/13/2009 |
| Liquidation Preference for the Current Round | Senior |
| Round of Financing | Series A |
| Round Direction | N/A |
| Multiple of the Liquidation Preference | 0 – 1x |
| Type of Preferred Stock | Conventional Convertible |
| Anti-Dilution Protection | Weighted Average |
| Redemption at Investor’s Option | No |
| Pay-to-Play Provisions | No |
| Cumulative Dividends | No |
| What was the Dividend Rate? | 8% |
| Price Per Share | $2.1627 |
| Amount Raised in Current Round | $10 MM |
Comments
We do capture much of that information, but we currently do not display it on the front end. Parts of that data can sometimes be found in the Restated/Amended Certificate. Subscribers to the Valuation and Deal Terms Database have access to copies of these Restated/Amended Certificates of Inc.
By
J Byers
on
January 14, 2010
The information asked for by Alan Forrester should be provided as part of any deal shown us. What would make this easy would be a "shares outstanding" and possibly "options pool".
By
marshall sterman
on
January 14, 2010
If the preferred was converted on day one, what percent of company ownership would it represent?
By
Alan Forrester
on
January 14, 2010
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