If you were given 1% of a company, which one would you take between Quora and Foursquare?
I asked this question two years ago (in 2011) and was pro-foursquare. I then re-asked a year ago when Foursquare was really crushing it and was the darling of the industry. Now, reports have come out that they were unable to raise another round at a higher valuation, were forced to do convertible debt, and only did $2 million in revenue last year. So, the shine is rubbing off. Would I still choose them over Quora? The answer is ‘yes’ although it has less to do with Foursquare and more to do with Quora.
Lately, i’ve become really down on anything advertising-supported. Basically, i think that business model is in the tanks and is only going to get worse. Nobody clicks on ads on the web and the rates are in constant decline. If you’re planning on building a business around it, you better have massive scale – and even then you’d be better off selling something else.
Foursquare could be the next Yelp, and while that’s a disappointment for some, I see that a rosier future than where Quora is headed. Although i have to say that the margin is much smaller today than it was 1 and 2 years ago when we last did this poll.