It Took Twitter Almost Three Years To Pass $200 Million In Valuation -- It Took Square Less Than Two

Jack Dorsey

Twitter creator Jack Dorsey just closed a big round of funding for his new company, Square, which values the company at more than $200 million. (Around $240 million, specifically.)

Not bad for less than two years of work; Square was founded in February, 2009.

Even more impressive is that Square’s valuation has passed $200 million almost a year faster than Twitter did — and Twitter is one of the biggest websites in the world.

Twitter closed a $35 million round in February, 2009, valuing the company at $250 million, almost 3 years after Jack Dorsey sent the first tweet in March, 2006.

So will Jack Dorsey’s new company outperform his old company?

It’s certainly a different game.

Twitter’s valuation — now $3.7 billion — has been fuelled more by user growth than by revenue growth. But Square will not only have to sign up many users to be successful, but also get them to process payments for actual money.

The payoff could be huge, but it’s not going to be easy.

Earlier: Square COO Keith Rabois Talks About Raising Huge Money, Fending Off Intuit, And Why He Said No To Google

Follow Dan Frommer on Twitter at @fromedome

Square evolution

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at