Foursquare has successfully raised significant funding over multiple rounds, establishing itself as a key player in geospatial technology. The platform offers a suite of location-based solutions designed to solve complex problems and accelerate time to value.
Keep reading to explore the intricacies of Foursquare's fundraising journey and the investors backing this innovative platform.
What Is Foursquare?
Foursquare, founded in 2009 in New York City, is a leader in geospatial technology. The company was established by Dennis Crowley and Naveen Selvadurai.
Foursquare offers a robust platform for location-based solutions, helping businesses increase visibility and aiding users in finding places to eat, drink, or shop.
With a dedicated team, Foursquare continues to innovate in the realm of geospatial technology, providing foundational building blocks to turnkey solutions.
How Much Funding Has Foursquare Raised?
- Seed Round
- Amount Raised: $1.35 million
- Date: September 2009
- Lead Investors: Union Square Ventures, O'Reilly AlphaTech Ventures
- Motivation Behind the Round: To expand services, including launching new mobile applications and enhancing the business model involving location-based deals.
- Series B Round
- Amount Raised: $20 million
- Date: June 2010
- Lead Investors: Andreessen Horowitz, Union Square Ventures, O'Reilly AlphaTech Ventures
- Valuation at Round: $95 million pre-money
- Motivation Behind the Round: To staff up, develop new products, move into a larger office, and hire more engineers.
- Series D Round
- Amount Raised: $35 million
- Date: December 2013
- Lead Investors: DFJ Growth, Capital Group's Smallcap World Fund
- Valuation at Round: Just over $600 million
- Motivation Behind the Round: To grow sales and engineering, expand internationally, and validate new passive awareness technologies and monetization options.
- Debt Financing Round
- Amount Raised: $41 million
- Date: April 2013
- Motivation Behind the Round: To support growth and product innovation, particularly around recommendations service and monetization tools.
- Series E Round
- Amount Raised: $45 million
- Date: January 2016
- Motivation Behind the Round: To continue scaling the platform and enhance product offerings.
- Series F Round
- Amount Raised: $33 million
- Date: October 2018
- Lead Investors: NAVER
- Motivation Behind the Round: To accelerate growth and expand into new markets.
- Series G Round
- Amount Raised: $150 million
- Date: May 2019
- Lead Investors: Raine Ventures
- Motivation Behind the Round: To further develop geospatial technology and expand global reach.
Total Amount Raised: $325.35 million
Current Valuation: $600 million (~estimated)
Key Investors
- DFJ Growth
- Details: DFJ Growth is a venture capital firm that focuses on growth-stage investments. Barry Schuler, a partner at DFJ Growth, joined Foursquare's board.
- Investment Focus Areas: Technology, innovation, growth-stage companies
- Notable Investments: Tesla, SpaceX, Box
- Andreessen Horowitz
- Details: Andreessen Horowitz is a venture capital firm co-founded by Marc Andreessen and Ben Horowitz. They are known for investing in technology companies with strong leadership and innovative products.
- Investment Focus Areas: Technology, early-stage startups, growth-stage companies
- Notable Investments: Facebook, Twitter, Airbnb
- Union Square Ventures
- Details: Union Square Ventures is a venture capital firm that invests in internet services that create large networks. They focus on early-stage investments.
- Investment Focus Areas: Internet services, early-stage companies, high-growth technology
- Notable Investments: Twitter, Etsy, Tumblr
- O'Reilly AlphaTech Ventures (OATV)
- Details: O'Reilly AlphaTech Ventures is a venture capital firm that invests in early-stage technology companies. They are known for their focus on innovative startups.
- Investment Focus Areas: Early-stage technology, innovative solutions, disruptive technologies
- Notable Investments: Bitly, Foursquare, Codecademy
- Spark Capital
- Details: Spark Capital is a venture capital firm that focuses on early-stage and growth-stage investments in technology, media, and entertainment sectors. Bijan Sabet from Spark Capital joined as a board observer.
- Investment Focus Areas: Technology, media, entertainment
- Notable Investments: Twitter, Oculus VR, Slack
What's Next for Foursquare?
Foursquare's future is brimming with opportunities, particularly in expanding its sales and engineering teams and growing its international presence in markets like Turkey, Russia, and Brazil. With 45 million registered users and new products like Ads for Small Business, the potential for monetization is vast. The company’s focus on real-time recommendations and passive awareness technologies aligns well with industry trends, positioning it for significant growth.
Future fundraising seems promising, given the successful Series D round and previous debt financing. However, challenges such as intense competition in the local advertising market and the need to prove revenue growth and product innovation remain. Additionally, the departure of key personnel and the pressure to stay independent could pose hurdles. Yet, with strategic focus and continued innovation, Foursquare is well-placed to navigate these challenges.
Use Clay to Get Funding Data
Sales professionals, take your strategy to the next level by leveraging Clay’s platform to access comprehensive fundraising data on companies like Foursquare and gather other critical business insights.
Sign up for free on Clay and start making data-driven decisions today.
