Foursquare, the poster child for check-in tech when the trend was hot, announced this week that it has raised $41 million in a new financing round. The funding was provided by private-equity firm Silver Lake and existing investors Andreessen Horowitz, O’Reilly AlphaTech Ventures, Spark Capital, and Union Square Ventures. What is striking about this transaction is that the funding was debt — specifically convertible debt — rather than equity. That is startling for a company of Foursquare’s name recognition and still-emerging status in the startup cycle.
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VCs Throw Foursquare a Hail Mary Pass
Posted by: Erika Morphy April 13, 2013 05:00 AMFoursquare, the poster child for check-in tech when the trend was hot, announced this week that it has raised $41 million in a new financing round. The funding was provided by private-equity firm Silver Lake and existing investors Andreessen Horowitz, O’Reilly AlphaTech Ventures, Spark Capital, and Union Square Ventures. What is striking about this transaction is that the funding was debt — specifically convertible debt — rather than equity. That is startling for a company of Foursquare’s name recognition and still-emerging status in the startup cycle.