In a highly secretive funding round of unprecedented proportion, Foursquare was just endowed with enough dough to grow itself. The whole amount is a healthy $50 million, the sum being poured onto strategic areas that allows the check ins champion to be more competitive at grabbing new users. On top of this singular achievement, its current valuation stands at $600 million.
This latest funding round was led by Andreessen Horowitz, with Union Square Ventures, OATV, and Spark Capital also aboard. The confidence boost (and beneficial publicity) this new round gives could go some way in offsetting the whispers that Foursquare is a lame duck incapable of actually making money.
Despite having a small userbase for a supposedly super-popular mobile app, Foursquare still has the faith of its investors. It’s also being touted as capable of offering a customer experience not found elsewhere. At least this is what Dennis Crowley believes:
“Crowley emphasized that Foursquare has a very different value proposition from competitors and is focused on not only rewarding loyal patrons but tracking how their referrals snake through the social graph offering different kinds of rewards to new customers, repeat customers, referred customers and of course the mayors in a way that only Foursquare can.”