Matt Rosoff
Foursquare is looking to raise between $20 million and $40 million this summer, at a valuation of $500 million, the Wall Street Journal reports today.
Founder Dennis Crowley has been out in California lately -- one spy saw him eating sushi with Google's Marissa Mayer in San Francisco -- and apparently he was talking to potential funders in Silicon Valley last week. The Journal says Foursquare hopes to close its next round by June.
The Journal calls $500 million valuation a "stretch," noting that last summer's investments from Andreessen Horowitz and others placed the company's value at about $100 million.
SAI's Dan Frommer predicted that the company would return to fundraising shortly after ending a major brainstorming/strategy sessions, with potential valuations as high as $1 billion. As he pointed out, companies should raise funds when they can -- not when they have to -- and with positive app reviews and a nice growth rate in number of downloads, Foursquare is smart to beat the bushes now.
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