Foursquare Gets $41 Million Investment, Time to Grow
The beleaguered location-based mobile app gets a $41 million lifeline
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When Dennis Crowley debuted Foursquare, his location-based social media app, at South by Southwest in 2009, he got rave reviews. The tech blog Mashable called Foursquare the “breakout mobile app” of the event. VentureBeat called it “the next Twitter.” At this year’s SXSW, Crowley, 36, had to remind people his company still exists.
For many users, the novelty of telling friends they’ve “checked in” to a store or restaurant, earning real discounts and virtual badges, has worn off. Foursquare’s main source of revenue, ads on its search engine, has been a disappointment, in part because many users don’t realize the app offers search. As a result, Foursquare has been slow to make money from mobile ads geared to a user’s location.