Foursquare secured $41 million in funding, coming shortly after the launch of the latest version of its app.
The search functionality is more prominent in Foursquare 6.0, with the check-in button — the original selling point of the service — located at the bottom of the interface. It also highlights nearby friends and points of interest.
According to reports, Foursquare generated $2 million in revenue in 2012 but its main source of revenue — ads on its search engine — have disappointed.
CEO Dennis Crowley said in a blog post about the funding that Foursquare has still “got a ton left to do” and is working to improve its search capability and to develop tools that allow local businesses to connect with their customers.
The funding comes from new investor Silver Lake Waterman growth debt fund and existing investors Andreessen Horowitz, O’Reilly AlphaTech Ventures, Spark Capital, and Union Square Ventures.
Research firm PrivCo predicted in January that Foursquare would struggle to remain viable until the end of 2013, with other commentators suggesting a buyout was needed.
By avoiding another equity funding round, a Bloomberg report suggested, the company can delay debate about its true value. Previous investments pegged the company at $600 million.
In terms of boosting revenue, Foursquare is planning to allow all merchants it works with to buy ads from the summer, according to Bloomberg. Only 50 of its 1.5 million strong business customer base are currently able to buy ads on the service.
The company also recently launched a revenue sharing deal with Visa and MasterCard, allowing users to access Foursquare discounts directly through their credit cards.