You might be right. I don't really know people who use foursquare, and it's use cases from a consumer standpoint are really limited to people who live in cities (forget middle america)

That said, this round does make a lot of sense for investors and management. If they didn't raise a round they would have run out of cash. That's over 5 years and $100M down the drain today. Rather than write the entire thing off, they're giving the company another 2 years to create something worth more than bankruptcy. There is still a lot to bet on. I'm not sure where they'll concentrate, but there is something valuable in being the location based layer of the internet, or being in a position to make cities more searchable on the go.

Notice it's a debt round (w no valuation). They aren't trying to value the company higher, they're just trying to keep it alive as cheaply as possible