Foursquare just made its first acquisition. The location tech company has acquired Placed from Snap Inc on the heels of a fresh $150 million investment led by the Raine Group. The terms of the deal were not disclosed. Placed founder and CEO David Shim will become President of Foursquare.
Placed is the biggest competitor to Foursquare’s Attribution product, which allows brands to track the physical impact (foot traffic to store) of a digital campaign or ad. Up until now, Placed and Attribution by Foursquare combined have measured over $3 billion in ad-to-store visits.
Placed launched in 2011 and raised $13.4 million (according to Crunchbase) before being acquired by Snap Inc. in 2017.
As part of the deal with Foursquare, the company’s Attribution product will henceforth be known as Placed powered by Foursquare. The acquisition also means that Placed powered by Foursquare will have more than 450 measureable media partners, including Twitter, Snap, Pandora, and Waze. Moreover, more than 50 percent of the Fortune 100 are partnered with Placed or Foursquare.
It’s also worth noting that this latest investment of $150 million is the biggest financing round for Foursquare ever, and comes following a $33 million Series F last year.
Here’s what Foursquare CEO Jeff Glueck had to say about the financing in a prepared statement:
This is one of the largest investments ever in the location tech space. The investment will fund our acquisition and also capitalize us for our increased R&D and expansion plans, allowing us to focus on our mission to build the world’s most trusted, independent location technology platform.
That last bit, about an independent location technology platform, is important here. Foursquare is ten years old and has transformed from a consumer-facing location check-in app — a game, really — into a location analytics and development platform.
Indeed, when Glueck paints his vision for the company, he lists five key areas of focus:
- Developer Tools to build smarter apps and customer engagement, using geo-context;
- Analytics, including consumer insights for planning;
- Audiences, so businesses can reach the right consumer segments for their message;
- Attribution, to test and learn which messages, segments and channels work best;
- Consumer, where through our own apps and Foursquare Labs’ R&D efforts we showcase what’s possible and inspire developers via our innovations around contextual location.
You’ll notice that its consumer apps, Foursquare and Swarm, are at the bottom of the list. But that’s because Foursquare’s real technological and strategic advantage isn’t in building the best social platform. In fact, Glueck said that more than 90 percent of the company’s revenue came from the enterprise side of the business. Foursquare’s advantage is in the accuracy of its technology, as afforded by the decade of data that has come from Foursquare, Swarm, and the users who have expressly verified their location.
The Pilgrim SDK fits into that top item on the list: developer tools. The Pilgrim SDK allows developers to embed location-smart experiences and notifications into their apps and services. But it also expands Foursquare’s access to data from beyond its own apps to the greater ecosystem, yielding the data it needs to power analytics tools for brands and publishers.
With this acquisition, Placed will be able to leverage Foursquare’s existing map of 105 million places of interest across 190 countries, as well as tap into the measured U.S. audience of over 100 million monthly devices.
Foursquare and Placed share a similar philosophy of building against a truth set of real consumer responses. Getting real people to confirm the name of their location is the only way to know if your technology is accurate or not. Placed has leveraged over 135 million survey responses in its first-party Placed survey apps, all from consumers opted-in to its rewards app. Foursquare expands the truth set for machine learning exponentially by adding in our over 13 billion consumer confirmations.
The hope is that Foursquare is accurate enough to become the de facto location analytics and services company for measuring ad spend. With enough scale, that may allow the company to break into the walled gardens where most of that ad spend is going, Facebook and Google.
Of course, to win as the “world’s most trusted, independent location technology platform,” consumers have to trust the platform. After all, one’s location may be the most sensitive piece of data about them. Foursquare has taken steps to be clear about what its technology is capable of. In fact, at SXSW this year, Foursquare offered a limited run of a product called Hypertrending, which was essentially an anonymized view of real-time location data showing activity in the Austin area.
Here’s what Executive Chairman and cofounder Dennis Crowley had to say at the time:
We feel the general trend with internet and technology companies these days has been to keep giving users a more and more personalized (albeit opaquely personalized) view of the world, while the companies that create these feeds keep the broad “God View” to themselves. Hypertrending is one example of how we can take Foursquare’s aggregate view of the world and make it available to the users who make it what it is. This is what we mean when we talk about “transparency” – we want to be honest, in public, about what our technology can do, how it works, and the specific design decisions we made in creating it.
With regards to today’s acquisition of Placed, Jeff Glueck had this to say:
Both companies also share a commitment to privacy and consumers being in control. Our Foursquare credo of “data as a privilege” only deepens as our company expands. We believe location should only be shared when consumers can see real value and visible benefits driven by location. We remain dedicated to elevating the industry through respect for transparency, user control, and instituting layers of privacy safeguards.
This new financing brings Foursquare’s total funding to $390.4 million.