Square Board Member Khosla to Vacate His Seat Ahead of IPO

  • Khosla preference is to not serve on public company boards
  • Venture capitalist to stay on as adviser to Square's directors

Square Inc., the mobile-payments company founded and led by Twitter Inc. Chief Executive Officer Jack Dorsey, is losing one of its longstanding board members ahead of its initial public offering.

Vinod Khosla, founder of venture capital firm Khosla Ventures, tendered his resignation from Square’s board, according to a filing Monday with the U.S. Securities and Exchange Commission. Khosla became a director in June 2011 and will remain an adviser to the board.

“Mr. Khosla has previously expressed his desire to step down from our board of directors immediately prior to our initial public offering, consistent with his stated preference not to serve on the boards of directors of public companies,” Square said in the filing.

Square proposed an initial offering size of $275 million, a placeholder amount used to calculate fees that will probably change. The move to go public comes at a dynamic time for the payments industry with a swath of companies from Apple Inc. to PayPal Holdings Inc. pushing into the space.

In the nine months ended in September, Square’s net revenue climbed 49 percent from a year earlier to $892.8 million and it posted a net loss of $131.5 million, according to the filing. A year earlier, it had a net loss of $117 million.

Square plans to use proceeds from the IPO for general corporate purposes and possibly for acquisitions, the filing shows. Goldman Sachs & Co., Morgan Stanley and JPMorgan Chase & Co. are leading the offering.

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