Key Takeaways
- • Foursquare co-founder and former CEO Dennis Crowley says equity holders, including preferred and common stockholders, received no returns from the company's final sale to advertising company Infillion, according to a new blog post reported by TechCrunch.
- • Foursquare had raised more than $411 million in funding according to PitchBook data, yet the acquisition was completed at an undisclosed value.
- • Crowley attributes the outcome to the 2021 appointment of the banker who led a 2019 private equity capital raise as CEO, saying management was unable to preserve or create new value.
- • Foursquare reported consecutive years of over $100 million in revenue after pivoting to enterprise business, before shutting its consumer app in 2024.
Summary
Last month, advertising company Infillion acquired location-data platform Foursquare, once a popular social network, at an undisclosed value. In a new blog post, co-founder and former CEO Dennis Crowley said investors did not see any returns from the sale. Crowley referenced a post by an angel investor, inferred that neither preferred nor common stockholders received any value from the transaction, and said he was disappointed by the outcome.
Crowley said the company performed well after it shifted its focus to enterprise business, posting consecutive years with more than $100 million in revenue. According to his account, Foursquare raised capital from a private equity firm in 2019, and in 2021 brought in the banker who led that raise as chief executive. Crowley blamed the final outcome on that leadership transition, stating that management was not able to preserve or create new value. PitchBook data cited in coverage shows the company raised over $411 million in total funding.
Crowley expressed regret for the result, writing that he was "heartbroken by this ending" and apologizing to the company's roughly 1,600 former employees over its 17-year history. Foursquare eventually shut down its app in 2024. Users who responded to his post described the service as useful for discovering new places in their cities and as a source of ideas for new applications. TechCrunch notes that startups such as Zenly and Jagat, as well as Instagram and Snapchat, have since explored social mapping features.
Crowley said the company performed well after it shifted its focus to enterprise business, posting consecutive years with more than $100 million in revenue. According to his account, Foursquare raised capital from a private equity firm in 2019, and in 2021 brought in the banker who led that raise as chief executive. Crowley blamed the final outcome on that leadership transition, stating that management was not able to preserve or create new value. PitchBook data cited in coverage shows the company raised over $411 million in total funding.
Crowley expressed regret for the result, writing that he was "heartbroken by this ending" and apologizing to the company's roughly 1,600 former employees over its 17-year history. Foursquare eventually shut down its app in 2024. Users who responded to his post described the service as useful for discovering new places in their cities and as a source of ideas for new applications. TechCrunch notes that startups such as Zenly and Jagat, as well as Instagram and Snapchat, have since explored social mapping features.
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