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Foursquare Doing Well Financially Despite Facebook Growth

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January 25, 2011

Foursquare Doing Well Financially Despite Facebook Growth

By Ed Silverstein, TMCnet Contributor

Foursquare (News - Alert) is in a good place financially right now – despite the growing popularity of Facebook.

In an interview with Reuters, Foursquare co-founder Dennis Crowley said his company has sufficient funds to last all of 2011. It does not plan a sale or to hold an initial public offering. Nor does it have any current plans to raise more money through an investment round.

Foursquare had 100,000 users and over the course of a year, the number jumped to over six million users.

TMCnet reports that Foursquare, a location-based social network, took only a month and a half to add another million users.

The company also raised $20 million during a 2010 funding round.

"We're in a good spot right now," Crowley told Reuters (News - Alert). "We've got enough money to go through the end of the year."

Over the last year, there have been numerous rumors that Foursquare was a likely takeover target by larger companies, such as Yahoo.

In a move that made Facebook more of a rival to Foursquare, Facebook offered a new feature called “Places." Reuters explains that it allows “users track friends' whereabouts across the United States.”

Foursquare has also been watched carefully by investors interested in taking part in investment rounds. In September 2009, Foursquare received $1.35 million from investors including Ron Conway, who funded Google (News - Alert) and PayPal; Jack Dorsey, the original CEO and co-founder of Twitter; and Union Square Ventures, which has invested in many Web companies like Twitter and Etsy, according to a report from TMCnet.

About 60 percent of Foursquare's users are from the United States. The balance lives in Europe, Japan, Southeast Asia and South America, Reuters reported.

And TMCnet reports that Foursquare has partnered with Vlingo (News - Alert), a provider of intelligent voice applications, to let users leverage Foursquare when speaking to their phones.

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Ed Silverstein is a TMCnet contributor. To read more of his articles, please visit his columnist page.

Edited by Tammy Wolf

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