Foursquare cofounder says acquisition gave $0 to equity holders, leaving him 'heartbroken'

Foursquare's acquisition remaining its cofounder sad and angry.

Dennis Crowley helped initiate the location innovation business in 2009. Seventeen years later, Foursquare was acquired by Infillion. Crowley wrote on Substack that one item of the acquisition remaining him "heartbroken."

Foursquare's acquisition earned equity holders exactly $0, Crowley wrote, alongside no prosperity offered for preferred or average stock.

"To our ~1600 erstwhile workforce complete 17 years, I am apologetic the Foursquare narrative ended in specified a way that makes it appear akin our company efforts were worth… nothing?" Crowley wrote.

Crowley remaining the CEO function in 2016, although he continued to guide Foursquare's investigation and betterment lab through 2021. After that, Crowley kept a place on the board.

Foursquare raised chief from The Raine Group, a personal equity firm, in 2019. Less than two years later, Gary Little became CEO. Little was one of The Raine Group's managing directors.

"Leadership was unable to maintain the value it inherited or create new value during those six years," Crowley wrote.

Foursquare workforce reached out to Crowley to province their frustrations alongside leadership, he wrote. He cited the company's Glassdoor reviews, which charge it 2.1 stars out of 5. The Raine Group did not react to a petition for comment from Business Insider.

Crowley additionally wrote that the $0 equity outcome was buried in a 125-page PDF for Foursquare's lawful team. "No sole idiosyncratic stood up to own (or equal acknowledge) the outcome," he wrote.

Calynn Krieger, an administrator vice chairman of promotion for Infillion, told Business Insider in an email that Foursquare had "remarkable innovation and a gifted team."

"We have nothing to say concerning Foursquare's erstwhile leadership, but we're glad the endeavor and its value continue, and we're committed to creating equal additional of it," Krieger said.

The instruction Crowley learned

Crowley took duty for his function in the lead-up to Foursquare's $0 outcome for equity holders. His decisions as CEO led to the need for a personal equity investment, Crowley wrote, and he stated he desired he were louder on the board.

His takeaway: "Maybe the biggest error I've made in my occupation is falling in affection alongside this company."

Crowley was too loyal to "making it work," he wrote, and stayed longer than he should have. "Watching the business gradually decay has been a grind on my soul," he wrote.

In a footnote, Crowley gave founders a piece of advice.

"It's fine to autumn in affection alongside the business you're building, but don't refuse yourself the capability to get closure and move on fair since the business itself hasn't yet informed an exit or ending," he wrote.