Foursquare struggles to attract investors following Facebook's shaky IPO

Foursquare struggles to attract investors following Facebook's shaky IPO
Foursquare's valuation is falling and the location-based social network is struggling to attract investors following Facebook's shaky initial public offering.

That's according to the Wall Street Journal, which reports Foursquare is currently looking to raise around $50 million.

But with Facebook currently down 40 percent against its IPO price, investors aren't as keen on investing in one of the internet's hot properties as they once were for fear of getting burned.

Ups and downs

In June 2011 Foursquare closed a $50 million funding round that valued the location-based service at $600 million.

That number grew over the following months, and in early 2012 an investment from Spark Capital partners LLC valued the company at $760 million.

However, people "familiar with the discussions" have told the Wall Street Journal that Foursquare is now struggling to convince investors that it's worth said figure, with the company's growth rate slowing and consumer interest in its location-based services reportedly in decline.

On the shelf

Foursquare isn't aching for capital, though, and may well shelve its latest fundraising efforts if it's unhappy with the valuations it's receiving.

What's clear is that the environment has become tougher for social start-ups in the wake of less-than-triumphant IPOs from the likes of Zynga and Facebook, and that's a trend that's may hurt mobile studios in the future, too.

[source: FierceMobileContent]

Staff Writer's news editor 2012-2013


No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies
Important information

This site uses cookies to store information on your computer. By continuing to use our site, you consent to Steel Media's privacy policy.

Steel Media websites use two types of cookie: (1) those that enable the site to function and perform as required; and (2) analytical cookies which anonymously track visitors only while using the site. If you are not happy with this use of these cookies please review our Privacy Policy to learn how they can be disabled. By disabling cookies some features of the site will not work.