To Sum it up:
Des Moines-based payments provider Dwolla, which enables seamless online payments for a quarter per transaction, has been a simmering hot new thing for a while. But recently the startup has had a flush of attention and VCs have been falling all over themselves to book flights to Iowa and get in on the company’s next round. Speaking of which, multiple sources have confirmed to Betabeat that Dwolla’s getting close to announcing a series B led by New York’s Union Square Ventures in the neighborhood of $10 million.
Dwolla, founded in 2008, hit $1 million a day back in July, the company announced at the time. Now it’s moving between $30 and $50 million per month, the startup told Business Insider last month, taking just $0.25 for transactions over $10 (less than $10, and it’s free).
We first heard about Dwolla back in May because the company was putting free credit in new users’ accounts, which some users then exchanged for Bitcoins. (Dwolla has lost popularity within the Bitcoin community since then, however.)
Fred Wilson is leading this round, who wrote a fantastic piece about why Bitcoin will succeed: http://www.avc.com/a_vc/2011/11/bitcoin.html
I hope he knows that the company he's investing in has a failed business model, steals from their merchants and clients to cover their losses due to the gaps and issues in their business model