Foursquare struggles to attract investors following Facebook's shaky IPO
Investors hesitant on $50M funding round
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.
03 March 2010 | News
Vodafone to get gamers checking-in with Foursquare
PocketGamer.biz Week That Was: San Francisco swaggers, Puzzle and Dragons roars, and Google responds to Game Center Android, iPhone, iPadLATEST FEATURES
San Francisco Week: Gaming and technology is 'baked into the Bay Area's DNA', says PlayFirstLATEST COMMENTS
Funzio's second freemium game Modern War does 1.5 million iOS downloads in first week 18