Foursquare Co-Founder Reveals Equity Holders Received No Returns from Company’s Acquisition
Recently, Infillion, an advertising firm, purchased the location-based data platform Foursquare, which was once a well-known social networking site, although the financial details of the acquisition remain undisclosed. In a blog entry, Dennis Crowley, a co-founder and the former CEO of Foursquare, expressed that investors did not see any returns from this transaction.
Crowley alluded to comments made by an angel investor, indicating that neither preferred nor common stockholders benefited from the deal, and he conveyed his dismay regarding the situation.
“I was truly saddened by this conclusion. Many individuals devoted considerable time, energy, passion, and love to develop Foursquare — from the company and its products to the brand and culture. Those who were involved, or even close to it, understand what I mean. To our approximately 1,600 former employees over the course of 17 years, I regret that the Foursquare narrative has culminated in a way that suggests our collective efforts were worth… nothing?” he stated in his post.
Crowley remarked that the company thrived after pivoting toward enterprise solutions, achieving over $100 million in revenue for several consecutive years. In 2019, Foursquare secured funding from a private equity firm, and in 2021, appointed the banker who facilitated that raise as CEO. He attributed the unsatisfactory outcome to this leadership change, suggesting that the company’s management failed to maintain or generate new value.
Foursquare, which had accumulated over $411 million in funding, according to PitchBook records, ultimately discontinued its app in 2024.
Crowley’s post elicited responses from numerous individuals who noted that Foursquare was instrumental in helping them discover new locations within their cities and inspired the development of new applications. Following Foursquare’s trajectory, startups like Zenly and Jagat, as well as platforms like Instagram and Snapchat, have ventured into the realm of social mapping.
