Providence-based Swipely has raised $12 million in Series B funding, according to a report in PandoDaily. The round was led by Shasta Ventures and joined by existing investors Index Ventures, Greylock Ventures, First Round Capital and Boston-based NextView.

Swipely’s payment processing system offers small businesses data on customers that can be used to better target marketing efforts. As I described in a previous post:

The value that Swipely can offer is two-fold. First, it gives small businesses analytics about their customers. Second, it offers a series of marketing tools to engage with customers, utilizing that data.

Swipely was founded by Rhode Island native Angus Davis, previously the founder of TellMe, which sold to Microsoft for $800 million in  2007.

According to Pando, Swipely’s Rhode Island location made fundraising more difficult:

“It definitely hurt us raising outside of Silicon Valley,” [Davis] says. “But a lot of people get on a plane to go to Bentonville, Arkansas. Last I checked no one likes to go to Bentonville, Arkansas, but that’s where Walmart is.”

If you’re good enough, the VC’s will come to you.