● Covered by 1 source · 1 reportMedium impact1 negative
Foursquare Co-founder States Equity Holders Received No Returns from Infillion Acquisition
Key points
- Foursquare acquired by Infillion at an undisclosed value.
- Co-founder Dennis Crowley stated no returns for equity holders.
- Crowley cited management changes and value loss as reasons.
- Foursquare raised over $411 million in funding before acquisition.
Acquisition and Lack of Returns
Location-data platform Foursquare was recently acquired by advertising company Infillion. Foursquare co-founder and former CEO Dennis Crowley disclosed in a blog post that investors, including both preferred and common stockholders, did not receive any returns from this sale. The value of the acquisition was not publicly disclosed.
Crowley's Disappointment and Apology
Crowley expressed heartbreak over the outcome, acknowledging the significant effort invested by many into building Foursquare's company, products, brand, and culture. He apologized to the approximately 1600 former employees over 17 years, suggesting that their collective efforts appeared to be worth nothing in the end.
Company Performance and Management Shift
Crowley noted that Foursquare had performed well after pivoting to an enterprise business model, achieving consecutive years with over $100 million in revenue. However, he attributed the negative acquisition outcome to a transition that occurred after the company raised capital from a private equity firm in 2019 and brought in a new CEO in 2021. He stated that the subsequent management failed to preserve or create new value.
Funding and App Shutdown
According to PitchBook data, Foursquare had raised over $411 million in funding throughout its history. Despite this substantial investment, the company ultimately shut down its consumer app in 2024. The company's original social networking features were influential, inspiring later social map applications like Zenly, Jagat, Instagram, and Snapchat.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Foursquare co-founder Dennis Crowley stated that neither preferred nor common stockholders received any returns from the company's recent acquisition by Infillion. Crowley attributed this outcome to management changes and a failure to preserve or create value after the company shifted focus to enterprise business and raised capital from a private equity firm.