It has been a week of good news for Foursquare. On Monday, the location-based social networking startup announced that it has more than 10 million members; now it's finishing the week by revealing that it has raised $50 million in a new round of funding.
More impressive than the funding itself is the $600 million valuation that was first reported in TechCrunch, and seems to have been confirmed by The New York Times. Adweek has already written about the company's paltry revenue and the uncertainty around its business model—at the time, the rumored valuation was a mere $500 million. In fact, several firms stayed away from the deal because of that uncertainty, according to TechCrunch.
That may be one of the reasons why Foursquare stuck largely with its existing investors. Andreessen Horowitz led Foursquare's $20 million funding last year, and it played the same role in the new round. New investor Spark Capital also participated, as did previous backers O'Reilly AlphaTech Ventures and Union Square Ventures.
Foursquare says it plans to use the money to hire more engineers, expand the features it offers to merchants, and "try a ton of new things." The funding blog post also offers a vision that goes beyond letting people check in to their favorite spots: "It’s about making the world easier to use. It’s about discovering new places, connecting with friends, and forging new relationships with the places you visit."