Square product chief Megan Quinn exits to join Kleiner Perkins
Square Director of Products Megan Quinn has resigned her post to join venture capital firm Kleiner Perkins Caufield & Byers. Quinn will join the company's digital group, where she will focus on investments in the commercial Internet space.
Quinn's hiring follows less than two weeks after Kleiner Perkins partner Ellen Pao filed suit against the firm, alleging harassment and gender discrimination. A Kleiner Perkins spokesperson told Reuters that the Quinn hire is not a response to the Pao lawsuit.
Quinn joined Square in mid-2011 after working in product management at Google (NASDAQ:GOOG), where she led development of services including Google Maps. Quinn leaves Square on a high note: In April, the startup reported it is now processing mobile transactions at an annualized rate of $5 billion. More than 1 million merchants are now using Square, which enables small businesses and other users to accept credit and debit purchases by swiping cards through a small dongle that plugs into their smartphone's audio jack. Square charges a flat fee of 2.75 percent on all transactions and promises users no contracts, monthly fees or hidden costs.
Recent reports indicate Square is currently raising a new round of financing that values the company at $4 billion--roughly four times what it was worth less than a year ago. Square has raised about $137 million from investors including Kleiner Perkins as well as Tiger Global Management, Sequoia Capital and Khosla Ventures. During its last round, completed in June 2011, Square raked in $100 million, vaulting the firm's valuation to more than $1 billion.
Reuters reports that Square may struggle to raise funds in the wake of social network Facebook's recent IPO. Facebook is now worth about $26 billion less than it was just two weeks ago, and insiders say investor enthusiasm for Web 2.0 companies has chilled. Given that investors seek to fund startups they believe will be worth at least three to five times more than their initial investment by the time the companies get acquired or go public, Square must convince the venture capital community it will be worth at least $12 billion within the next few years to justify a $4 billion valuation.
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