After a new round of financing Foursquare, startup costs will fall by half

Foursquare is close to completing the next round of financing, after which the company's value will be about $ 250 million. This figure is more than two times less than the value that, according to investors, the company had a couple of years ago.

According to various sources, the startup also negotiated with potential buyers. So the company could be sold instead of completing another round of financing. The new round will bring Foursquare at least $ 20 million, and the maximum figure can reach $ 40 million. At least one new investor will take part in this round. Previous rounds were financed by investors such as DFJ Growth, Microsoft, Silver Lake Partners, Spark Capital, Union Square Ventures and Andreessen Horowitz.

Recall that in 2013, the Foursquare company received $ 35 million in funding, in a round after which the startup was valued at $ 650 million.
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Foursquare, which used to be one of the most popular startups in New York, was created in 2009. This is a service through which you can tell your friends which bars and restaurants you visited - a startup based on the same concept as the previous Dennis Crowley company called Dodgeball. Foursquare eventually evolved into a service that helps you find places to eat, drink and shop. According to the founder of the project, last summer the service had about 50 million active users.

And while Crowley argues that Foursquare can make real money on advertising, the company's growth has never matched its valuation, which both the founders and investors of the startup are modestly silent about. Theoretically, the company could make a profit by providing data on users to companies such as Microsoft (which, by the way, has already invested in Foursquare earlier), or Twitter.