Over the last few years, it has been felt in the tech circles that Foursquare has been something of a has-been. While they still have around 45 million people who have signed up for the service, it is nowhere in the big leagues of Facebook and Twitter even though it was one of the frontrunners in the social media wave.
This has largely been, I think because its functionality has been replicated by Facebook and other companies. Also, their gamified approach and check-ins were not really interesting to users. Keeping this in mind, the company has pivoted towards playing a larger role in discovery of places and experiences. It has also been making good developments when it comes to building revenues by targeting local businesses with its new ad products.
This may be working for the company, as it seems that investor confidence has improved. They have announced that they have raised $35 million in Series D funding from DJF Growth, SmallCap World Fund and Barry Schuler, who is the former CEO of AOL. This is good news for the company since it was struggling to raise funding some time back and had to raise $41 million in a debt deal instead of equity.
The company founder, Dennis Crowley also gave out additional stats in the blog post, saying that the company currently has a database of 40 million tips and 5 billion checkins. Personally, I don’t really find much use for Foursquare in my day to day life but I do really think they are sitting on a huge pile of precious locational data. This data could be worth a lot if it is used wisely. This data is also inherently social and one can interpret it in meaningful ways to understand the social discovery segment. I am sure that other big companies could use it augment their services in some way.
Source | Foursquare Blog