Foursquare will have a lot more money to play with. The New York Times reports the location-based social network has raised an additional $20 million in venture capital money, adding big time to its previous $1.35 million funding. The company is now valued at almost $100 million. Among the new investors is Andreessen Horowitz, the VC fund led by Netscape pioneer Marc Andreessen. An interesting nugget from the story – “Since its introduction last year, Foursquare has established partnerships with more than 10,000 businesses, including Starbucks, Bravo TV, Zagat’s and The New York Times Company.”
The future of local advertising will be heavily location-based. It’s not hard to see why so many companies are bullish on Foursquare. However, there are other location-based social groups, and the concept can be replicated. Gowalla and Loopt are two serious contenders. Will Foursquare maintain its top position, or will the market fragment?
