Foursquare and the Fun Gap: What Foursquare Should Have Been
Today Foursquare announced a new round of debt-based financing amounting to $41M in loans and convertible notes. It has been controversial, because debt-based financing suggests the company has a significant performance problem (Jason Gelman has a good wrap-up of the spirited discussion). Foursquare’s problem has become increasingly clear to Gamification folks over the past two years – it’s just not fun anymore. In the transition from a (great) game to a (good) loyalty program to a (mediocre) recommendations engine, they lost the plot, alienated customers and wasted a ton of resources and time.
