Foursquare co-founder says equity holders saw no returns from the company’s acquisition
Foursquare co-founder Dennis Crowley revealed that equity holders, including investors and former employees, received no returns from the company's recent acquisition by Infillion. He expressed disappointment, blaming the outcome on management changes after a 2019 private equity raise, despite the company achieving over $100 million in revenue in recent years.
Why it matters
This highlights the significant risks for investors and employees in tech startups, even those with substantial funding and revenue, and offers a cautionary tale about company valuation and management decisions in the tech industry.
Last month, advertising company Infillion acquired location-data platform Foursquare, a once popular social network, at an undisclosed value. Now, in a new blog post , Foursquare co-founder and former CEO Dennis Crowley said that investors didn’t see any returns from the sale.
Crowley referenced a post by an angel investor , inferred that neither preferred nor common stockholders got any value out of the deal, and said he was disappointed by the outcome.
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