Foursquare Raises $45 Million, Cutting Its Valuation Nearly in Half:
When Dennis Crowley helped found Foursquare in 2009, he was ahead of the pack in creating a social app that used location technology. Now Foursquare may be at the front of another coming wave: tech start-ups that are raising money at lower valuations than before.
On Thursday, Foursquare said it had raised $45 million in a new round of venture funding, as it tries to bolster its location data-based advertising and developer businesses. The financing pegs Foursquare’s valuation at roughly half of the approximately $650 million that it was valued at in its last round in 2013, according to three people with knowledge of the deal’s terms, who spoke on the condition of anonymity.
I’ve still never used Foursquare. I’m not saying I don’t see the value in the service, I’ve just never had any incentive to use it.
It’s good to see some of these companies (somewhat) come back down to earth with their valuations.
It’s important to remember valuations of companies are completely made-up numbers. Sure, they’re supposed to be grounded in user data and other metrics, but they’re still—at best—educated guesses. Guesses that can completely change when the competition changes.
Last week Twitter debuted a new feature called “Moments”. It shows up as a new tab at the bottom of the Twitter app and features a curated list of breaking events by category.
At Statechery, Ben Thomspon is excited and sees it as (potentially) nothing less than the reinvention of the newspaper:
Well, the product launched…and it’s fantastic. Moreover, it’s not only that it’s fantastic from a product perspective — actually, there is a lot to nitpick — but that it is fantastic from a strategic perspective.
That’s right, Twitter just reinvented the newspaper. It’s not just any newspaper though — it has the potential to be the best newspaper in the world.
Startup L. Jackson is a sees a need for a strategy adjustment:
Moments should be a standalone app. Period. It can still use the Twitter namespace and shared login. Be made by Twitter, etc. But Twitter needs something it can market to users that is not Twitter.
By making it a standalone, Twitter can avoid all of the problems that exist with implementing it as a tab. There is no dual onboarding experience, no @mentions, no main feed to educate the user on, no DMs, etc. Just great content and an occasional invitation to “join the conversation” or “follow all of Bieber’s posts” at just the right time. See graphic representation below.
“Have you tried Moments? It’s like Snapchat stories meets Buzzfeed. It’s my new go to on the train.”
The important part is ‘Moments’ has launched.
Now Twitter just needs to keep refining and iterating.