Finally! Foursquare Raises $20 Million in Funding

UPDATED: Foursquare, which has been nearly as exhibitionist about sharing the details of its corporate dealings as some of its users are about sharing their locations, has finally closed its second funding round, CEO Dennis Crowley confirmed to us today. Update: Ben Horowitz of Andreessen Horowitz, which led the $20 million round, writes that one of the key motivators for the investment was Crowley’s leadership and vision in the mobile location-based services market.

Foursquare CEO Dennis Crowley at GigaOM

Crowley said the funding would be used on “new office space, more engineers and churning out new product.” He also said that those of us who’ve complained about being disinterested in the service as of late would soon be enticed back with new, engaging features. The company has been too busy with “technical scaling issues” to launch new stuff, Crowley said.

Crowley has also been busy doing other things. It’s been widely reported that Foursquare had been in acquisition talks with companies like Yahoo (s YHOO) and Facebook and had the attention of multiple venture capital firms including Accel Partners, Khosla Ventures and Redpoint Capital. At one point the Horowitz said publicly his firm had dropped out of the bidding to fund Foursquare because it was disappointed to see so much of the negotiations being played out in public, but it later reopened talks.

Foursquare had previously raised $1.35 million led by Union Square Ventures and including O’Reilly AlphaTech Ventures, who reportedly helped bridge the company while it figured out this latest round.

With reporting by Om Malik.