Foursquare Raises $41 Million to Not End Up Like Groupon
Since 2009, Foursquare has redesigned everything about its local search service except its revenue strategy while competitors like Groupon and LivingSocial have raced ahead. But there is a method to this company's madness. Bloomberg reports that Foursquare has raised $41 million in debt financing rather than shares to give Foursquare time to expand before investors start demanding a profit.
Since 2009, Foursquare has redesigned everything about its local search service except its revenue strategy while competitors like Groupon and LivingSocial have raced ahead. But there is a method to this company’s madness.
Bloomberg reports that Foursquare has raised $41 million in debt financing rather than shares to give Foursquare time to expand before investors start demanding a profit.
From the article:
With Groupon’s stock price down 69 percent from its November 2011 initial public offering, [CEO Dennis] Crowley says his slow-growth approach has been vindicated.
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