# Prof. Ari Ginsberg on Foursquare's business model

1 Faculty News November 19, 2013 ![Entrepreneur logo](/sites/default/files/styles/246w/public/assets/images/con_033740.jpg?itok=QGgEe5Xk)>

Excerpt from [Entrepreneur](http://www.entrepreneur.com/article/229949) -- “'Convertible debt at this later stage sends a signal that \[Foursquare’s\] business model is still not proven enough, and they still need to work on it and significantly ratchet it up,' says [Ari Ginsberg](http://www.stern.nyu.edu/faculty/bio/ari-ginsberg), professor of Entrepreneurship and Management at New York University's Stern School of Business. But he noted that this may have been Foursquare’s best option at the time -- else it fork over a greater percentage of the company's equity due to a potentially reduced valuation. 'It would have been far worse to have to bite the bullet of valuation," adds Ginsberg. 'If they landed at a lower valuation they would have done far more damage.'"

[Read more](http://www.entrepreneur.com/article/229949)

Additional coverage appeared on [Reuters](http://www.reuters.com/article/2013/11/19/idUS368798516820131119).