Paydiant decides to sell

Paydiant’s earliest investor explains why the mobile payment company is selling now. The startup company has allocated nice returns for venture capital firms that pumped nearly $35 million into Paydiant over the past four years, given that the post-money valuation on its Series B and Series C rounds were $55 million and $117 million, respectively.

The questions is … why is Paydiant selling out just as it's gaining mainstream attention?

Here is the explanation from Jim Moran, a venture capitalist whose firm, North Bridge, originally funded and incubated Paydiant:

"The reality is that mobile payments is still a zero billion dollar industry. While we had very big contracts with some very big merchants, the actual dollar values and volumes were just kicking in,” Moran says.  “So we mapped the capital requirements against time and projected volume — which equates the revenue register ringing for us — and we felt the partnership with PayPal made a lot of sense.”

In addition to North Bridge, Paydiant backers included General Catalyst, Stage 1 Ventures, Sands Capital Ventures and West Capital Management.

The full story can be found at Fortune.com