Foursquare Labs Inc. had started talks with several large technology firms. The discussion between Foursquare and said companies was about a potential strategic investment. This was according to people who had direct knowledge of the matter.
The social media company had been negotiating with venture capitalists that own convertible debt and would turn their holdings into equity. This was according to people who were familiar with the talks but asked not to be identified as the matter was held private in nature.
The talks showed that possible investors would reap benefits from a new advertising approach. Foursquare allows its target users to check in local places. Last April, Foursquare had raised a total of USD41 million in debt.
According to Chief Revenue Officer Steven Rosenblatt said in an interview, "I think we've proven our business model. Our business model is very clear and it's working, doing what we thought it would do, if not more. It's all well ahead of what we anticipated."
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