Foursquare Raises $41 Million To Revamp The App
Posted: April 17, 2013 by Alex Chan
Foursquare "checked in" in the social media in 2009 and at one point it was considered the miracle app. We all know how fast the Internet works so 4 years later; people need to be reminded that Foursquare still exists. Telling your friends you've checked in at a restaurant has become boring. Users have gotten tired of checking in. This doesn't seem to stop the company from finding investors.
The main source of the company's revenue comes from the advertisements placed on its search engine. Unfortunately, most users don't know the app has a search engine built into it. This is a problem for Foursquare who has managed to raise funding for its development through several stages. In 2011, they managed to raise $50 million.
With revenue estimated at $2 million this year, Foursquare had to persuade its investors and creditors that it still has some potentials. This year investors led by Silver Lake Partners as well as Union Square Ventures, Spark Capital and others, approved another financing round for Foursquare in total of $41 million. The new funding is part loan part convertible dept.
The new funding will give Foursquare a chance to prove it has a good business model and that it can be profitable. The company has stated that it is striving to become the best local search engine; somewhat of a parallel to Google but on a local scale. The Foursquare team is developing new tools that can make local businesses connect to their customers more easily as well as a new platform for companies to amplify the location place in their applications.
The Foursquare application has around 30 million registered users, of which only 4 million are active online through Facebook. When Foursquare released its new app for iOS this week, it announced that it had an amazing 3.5 billion check-ins overall. There might be hope for the app giant.