Saturday, December 10, 2011
Michael Moritz On Klarna?s $155M Round: ?This Is The Public Financing Of Twelve Years Ago?
On Friday, a little-known Swedish ecommerce payments company called Klarna raised a massive $155 million round from DST and General Atlantic. Its previous round was a scant $9 million in May, 2010 when it was discovered by Sequoia Capital and superstar partner Michael Moritz took a board seat (yes, he actually flies to Sweden for the board meetings). "This is the public financing of twelve years ago," Moritz tells me, "it is just done privately." Klarna's mega-round fits into a growing trend with successful internet companies that build out a substantial business on a few million dollars, then don't take on any more money until they do a huge round. Examples include Dropbox, which recently raised $250 million after only raising $7 million before, and Airbnb with its $112 million round (Sequoia was an early investor in both of these as well).