Mashable reports that mobile payment processor Square has just raised $27.5m dollars from venture capitalists, reportedly valuing the company at $240 million.
Considering Square only launched to the public in October 2010, and had several problems during its launch phase, including hardware shortages and risk worries, it has still managed to increase its value rapidly.
With 50,000 clients, it is already starting to show some impressive numbers, which it hopes to use to take on the established payment players such as Visa and Paypal, as well as some big hitters looking to enter the same market, such as Google and Apple.
Square want the money to add to the 64 staff it currently employs, and it expects to grow to 150 by the end of the year.
We’ve just seen Facebook given a $50 billion valuation, but with the number of users they have, together with the information it holds on each of them, it probably isn’t massively overblown.
$240 million for Square on the other hand does look quite over-priced. That’s nearly $5,000 per client so far, so what is the valuation based on?Â Is this the sign of a new tech bubble?
Update: there’s more on the valuation and a Paypal to Square brain-drain at Venturebeat
Update #2: GigaOm adds more speculation, wondering whether Square could eventually be swallowed up by the likes of Paypal or Google?