NEW YORK: Chennai-born Naveen Sevadurai, 31, who founded the location-based social networking site foursquare.com in 2009, must be thanking his stars for being ousted from his venture last year.
Today, there are reports that Foursquare raised $41 million in debt in order to keep the operation going, according to Business Insider.
Debt rounds like that can be tough for common shareholders. The news reminds us that sometimes it’s great to be the guy who gets canned, the report says.
Back in March 2012, Foursquare parted ways with co-founder Naveen Selvadurai. But Selvadurai didn’t leave empty-handed. Earlier that month, reports surfaced that Foursquare investor Spark Capital bought $50 million worth of stock from Foursquare employees, Business Insider says.
The rumor is that a huge portion of that cash went to Selvadurai in exchange for his equity on the way out the door.
Back then, Foursquare was a hot start-up with a $600 million valuation.Today, Foursquare is taking on debt to survive.
Selvadurai was one smart chap who cashed out at the right time, the report says.