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Dwolla Lands $12 Million

In a short, three-sentence blog post, Dwolla CEO Ben Milne announced that the company closed a $12 million round of funding. The investment, which brings the Iowa-based company’s total to $51.4 million, was led by Foundry Group with participation from Union Square Ventures, Next Level Ventures, Ludlow Ventures, High Alpha, and Firebrand– all existing investors.

The funds will be used to support the financial platform’s growing capital requirements and to expand its team. Founded in 2008, Dwolla is growing. “We have more than 40 openings to fill this year,” Milne noted in his blog post announcing the funding. “As we build our team, we do so knowing that the best teams are built by the inclusion of diverse ideas, experiences, and people,” he added.

Dwolla offers a white-label payments API that allows firms to credit or debit any U.S. bank account the user has connected. The company integrates with Sift Science to offer real-time identity verification to help reduce fraud. And in May of 2017, Dwolla integrated with Plaid to instantly verify and authenticate customers’ bank accounts using tokenization.

Dwolla, which most recently demoed FiSync at FinovateSpring 2015, is headquartered in Des Moines, Iowa. Last summer, the company added a multi-user feature to its Access API dashboard. In January, Dwolla began powering identity verification for Yahoo!’s Tanda savings app.