Foursquare Labs Inc. is apparently talking with several major technology companies about securing a strategic investment from them. That’s according to a report from Sarah Frier of Bloomberg. The report also indicates that Foursquare is talking with venture capitalists who hold its convertible debt about turning those holdings into equity.

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Will Foursquare secure an investment?

Investors may be likely to invest in the social media company now that it has begun to gather some benefits from the new advertising approach it rolled. The company now allows brands to target specific users when they have checked into a location on Foursquare.

The company raised $41 million in debt in April, and that debt raise enabled it to keep working on its business model, which still has not quite been proven yet. Meanwhile debate about what the social media company is worth has been delayed while it works on its business model.

Foursquare expected to beat this year’s goals

This year Foursquare is on track exceed its goals for sales, Chief Revenue Officer Steven Rosenblatt told Bloomberg. The company just began its new advertising approach last month, and according to Rosenblatt, enabling brands to target users after they check into a location is actually bring in three times the revenue the company had previously expected.

He told Bloomberg that he believes they have now proven their business model because it’s doing what they expected it to do and even more. He did not say what their sales goals were, and Foursquare declined to comment on the negotiations reported by Bloomberg.

Valuing Foursquare

In 2011, some investors valued it at $600 million, and since then, they’ve been waiting for the company to do what it said it could do. The social media company made just $2 million in sales last year, but it has been introducing new advertising products over the last few months. Those new products have enabled Foursquare to start earning money from its apps. More than 15 percent of the time, Foursquare’s app users either save or click on ads they receive after checking into a location. That rate far exceeds the less than 1 percent engagement recorded by most mobile apps.