Foursquare is struggling to attract investor interest in the wake of declining growth and social networking giant Facebook’s discouraging IPO. By Jason Ankeny.
The Wall Street Journal reports VC firm Spark Capital Partners acquired a $30m stake in foursquare in early 2012, valuing the mobile social networking start-up at $760m. Foursquare is now seeking to raise around $50m, but insiders say investors are now skittish about making bets on the sector with Facebook now down 40 per cent from its IPO price.
Potential foursquare investors also feel the company is moving to monetize too slowly and have expressed concern that consumer interest in its services is beginning to decline. Foursquare boasts more than 25m registered users, but only about 8m access the app on a monthly basis.
FierceMobileContent: Report: Foursquare valuation wavers following Facebook's IPO flop; TelecomTV content partner.
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