Foursquare, the US-based local services discovery app provider backed by software company Microsoft and publisher O’Reilly Media, has raised $45m in a series E round led by Union Square Ventures.
Morgan Stanley Alternative Investment Partners, DFJ Growth, Andreessen Horowitz and Spark Capital also invested.
The round valued the company at up to $330m, according to the Wall Street Journal, almost half the $650m valuation for its series D round in 2013, already a drop from a $760m valuation in 2012. Internet company Yahoo was reportedly in talks to acquire the company for $900m in June 2015.
Dennis Crowley, co-founder and chief executive of Foursquare, has stepped down from his position as a result of the drop in valuation and will now act as executive chairman. Jeff Glueck, its former chief operating officer, will now serve as CEO.
Founded in 2009, Foursquare’s primary mobile app lets users search for and discover local services based on recommendations. The app originally revolved around a feature that enabled users to broadcast their location to friends, but that functionality was turned into a separate app in 2014.
The cash injection will support the recruitment of 30 additional staff across sales, engineering and other divisions.
Foursquare has now raised approximately $234m in funding and debt financing. It previously obtained $15m from Microsoft in a 2014 series D extension, which boosted the round to $77.1m.
O’Reilly AlphaTech Ventures, the investment vehicle of O’Reilly Media, contributed to a 2009 seed round, a $20m round in 2010, and a $50m series C round in 2011. Other backers include Smallcap World Fund, Silver Lake Waterman and several angel investors.