Wednesday, June 29, 2011
Dynamics raises record-breaking $35 million for power cards and HIRING!Pittsburgh-based Dynamics has closed on a $35 million series B round of financing, possibly the largest Series B ever raised in the region.
The company is also gearing up for major growth, doubling in size to 60 this year and hiring.
Boston-based Bain Capital Ventures, a new investor, led the round. Dynamics received a $5.7 million Series A from Adams Capital Management in Sewickley in 2009. Joel Adams of Adams Capital and Jeffrey Schwartz of Bain have joined Dynamic Inc.'s board of directors.
Dynamics may have raised the largest series B in Pittsburgh to date, but in terms of total it is second to Aspinwall-based Targe Energy's $100+ million raised in 2006.
"This is a true market validation of how meaningful a disruption Dynamics is creating in Pittsburgh," says Jeff Mullen, founder and CEO. "This round will allow Dynamics to continue to increase the size of our team and increase our production capacity so we can continue to support the deployment of our Card 2.0 technology."
A celebrity startup from early on, Dynamics won the $1 million DEMOgod prize at DEMO Fall 2010 in addition to other prestigious competitions. The company's flagship product is a next generation payment card equipped with the world's first programmable magnetic stripe that communicates information. Card 2.0 offers greater security and convenience than current credit cards and can be used for multiple account transactions with the press of a button, says Mullen.
The technology is so hot that Citi, the world's largest credit card issuer, announced late last year that its 2G line of credit card products will be based on Dynamics technology.
Presently located in McCandless, Dynamics may expand to new digs soon, Mullen says. The company currently employs 30 and plans to double with the hiring of hardware and software engineers and payment executives.
Work will continue as the company develops and deploys new technology including battery-powered contact chip cards, battery-powered RFID cards and the world's first phone-based card payment system, Mullen says.
The story of Dynamics began back in 2007 when Mullen was attending the Tepper School of Business at CMU. Dynamics was an early PROBE with CMU's Project Olympus.
"This is terrific news and a big win for the region," says Lenore Blum of Project Olympus. "Dynamics was one of the first two student PROBEs to move into the Olympus incubator space. Jeff has been an inspiring role model for the many student PROBEs that have since followed him into the Olympus student incubator."
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Article courtesy of Popcity