Dwolla announces $6.85 million investment

Dwolla has raised a $6.85 million investment round, the Des Moines-based payments technology company announced Friday.*

Union Square Ventures of New York and Foundry Group of Colorado led the round. Additional investors include Iowa’s Next Level Ventures, Michigan’s Ludlow Ventures and Detroit Venture Partners, Kansas City’s Firebrand Ventures and High Alpha of Indiana.

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Dwolla CEO Ben Milne. (Jami Milne/Courtesy of Dwolla)

The company plans to use the investment to hire additional staff and expand its sales operations in Des Moines, according to a press release.

The announcement comes a few months after Dwolla said it would drop its consumer apps and focus on selling its API to developers and other companies.

Dwolla has 43 employees currently, after a restructuring last year. It plans to hire about 20 people during the next year, spokesman Jordan Lampe said in an email.

“The Midwest has a wealth of resources, but its biggest strength is its people and that’s a competitive advantage we plan on continuing to invest in,” Dwolla CEO Ben Milne said in a statement.

In total, Dwolla has raised more than $40 million in outside investment since launching nationally in 2010, Lampe said.

Prior investors include Union Square, Andreessen Horowitz and CME Group.

*Disclosure: Dwolla founder Ben Milne is a co-founder of Clay & Milk.