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Summary:

Foursquare, which has been nearly as exhibitionist about sharing the details of its corporate dealings as some of its users are about sharing their locations, has finally closed its second funding round of $20 million led by Andreessen Horowitz and including previous investors.

UPDATED: Foursquare, which has been nearly as exhibitionist about sharing the details of its corporate dealings as some of its users are about sharing their locations, has finally closed its second funding round, CEO Dennis Crowley confirmed to us today. Update: Ben Horowitz of Andreessen Horowitz, which led the $20 million round, writes that one of the key motivators for the investment was Crowley’s leadership and vision in the mobile location-based services market.

Foursquare CEO Dennis Crowley at GigaOM

Crowley said the funding would be used on “new office space, more engineers and churning out new product.” He also said that those of us who’ve complained about being disinterested in the service as of late would soon be enticed back with new, engaging features. The company has been too busy with “technical scaling issues” to launch new stuff, Crowley said.

Crowley has also been busy doing other things. It’s been widely reported that Foursquare had been in acquisition talks with companies like Yahoo and Facebook and had the attention of multiple venture capital firms including Accel Partners, Khosla Ventures and Redpoint Capital. At one point the Horowitz said publicly his firm had dropped out of the bidding to fund Foursquare because it was disappointed to see so much of the negotiations being played out in public, but it later reopened talks.

Foursquare had previously raised $1.35 million led by Union Square Ventures and including O’Reilly AlphaTech Ventures, who reportedly helped bridge the company while it figured out this latest round.

With reporting by Om Malik.

  1. No wonder they’ve been grabbing up tons of office space lately.

    $20 mil…wow.

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  2. Its official they want to be a local, social, LBS destination. They should think about innovation and acquisitions that can enhance user offerings. The more social cosmetic makeup they have the more users and businesses will put on.

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  5. [...] Ventures partner Fred Wilson has written a blog post about the somewhat convoluted path that led to the recent closing of a Series B financing round for Foursquare, in which USV has an investment. It was smart of [...]

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  8. [...] Yahoo making acquisition offers for the company, Foursquare has chosen to remain independent and recently closed a $20-million round of venture financing. The New York-based company is actually Crowley’s second location-based [...]

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