4 Things Foursquare Could Do with $41 Million
If by some miracle I wake up to find $41 million in my bank account, I would put half of it in time deposit just so I’m sure to have money in the future, then the rest I’d spend on living the good life and giving back to those in need. Since that’s not likely to happen, let’s not dwell on that. Let’s focus on a company, one that’s faced some serious obstacles on its journey, that just received a $41 million funding.
Foursquare, the location-based social network, raised $41 million in the form of a loan and convertible debt from Silver Lake Partners and venture capital firms Andreessen Horowitz, Union Square Ventures, O’Reilly AlphaTech Ventures, and Spark Capital.
Some have predicted that the app would shut down by year’s end, and in order to survive, the company needs to sell. But Foursquare has another solution in mind: borrow money. There’s nothing wrong with borrowing money as long as you can pay it back. And that’s where Fourquare’s problem goes deeper – it doesn’t seem to have the money to pay back the loan. According to one source, the company only made $2 million in revenue last year. So how will Foursquare pack back the debt? What could the social network do with $41 million to survive and turn things around?
To start, Foursquare recently released version 6.0 and it focuses on exploring what people may like in the future by putting search front and center on its mobile app. Foursquare initially grew popular as it allows people to tell others where they’re at with “check-in,” as in telling people you’re at a coffee shop or a particular movie house. Now, with search taking over the app, you can find people and places and see what they’re up to, as it also lets you know what time your friends checked in. What brought users back was the badges they earned, becoming mayor of certain establishments and getting discounts for their public display of affection. So what’s next for Foursquare?
.
What Foursquare could do with $41M
.
Daily deals
Since Foursquare is location-based, it could use the money to launch a new feature on the app that would allow people take advantage of daily deals near them. When a Foursquare user passes by a particular shop, a daily deal notification could pop-up on their screen informing them of flash sales or great discounted deals.
Ad platform
Foursquare could push better targeted ads. This will help promote brands and let people find new places to explore. This would also go well with daily deals offerings.
Ambient-aware
Ambient-aware apps have made huge splash at SXSW and it seems people are interested in apps that tells them what people close to them are talking about. Since Foursquare is already a location-based app, it could hone in on this particular feature. Foursquare users could easily find out what other Foursquare users near them are talking about, where they’re headed, or what shop they’ve been to, without having to actively search for the information.
NFC
Most high-end devices used nowadays are equipped with NFC chips. Foursquare could collaborate with establishments to make NFC terminal available in their shops so people using Foursquare could simply tap their devices on the terminal to check-in, get discounts or freebies, or get badges.
