Foursquare may be most known for its mobile check-in app that lets consumers notify their friends where they are and what they’re doing. But in recent months, the company has been quietly building itself up to pivot towards a B2B business model, aggregating all of that valuable consumer data — location, preferences and the like — to provide insight to other businesses.
Late last week, the firm announced its latest step towards that shift. Foursquare raised $45 million in Series E funding led by Union Square Ventures. Backers also included Morgan Stanley and existing investors DFJ Growth, Andreessen Horowitz and Spark Capital, according to reports on Thursday (Jan. 14).
[bctt tweet=”Foursquare raised $45 million in Series E funding.”]
But the financing isn’t just to prop up Foursquare’s ability to help smartphone users secure bragging rights for their travels and adventures.
TechCrunch reported that Jonathan Crowley, who has been moved to the company’s VP of product after serving as its CEO and executive chairman, noted that the firm has signed on to work with Apple, Twitter, Pinterest and other major conglomerates interested in the data Foursquare collects.
These B2B collaborations led the company to see its largest revenues last year, according to reports.
Despite the successes and the latest backing, analysts pointed out how far Foursquare’s valuation has dropped since 2013, when it last secured backing from venture capitalists.
Less than three years ago, the company was valued at about $650 million. Today, following the latest investment, it is valued at just $325 million, reports said.