New York startup finds success on foursquare

6/15/2011

Small business lending is slowly improving, but many entrepreneurs are still spending their money cautiously - the overhanging threat of another recession has many thinking twice before spending big money. This is why many companies have turned to internet marketing platforms, such as foursquare, to promote their startups.

For one New York-based entrepreneur, foursquare has proved to be a huge success. Luke Holden, who launched a lobster roll eatery in New York on a shoestring budget, went with foursquare out of necessity. However, the geosocial network quickly paid off, enabling Holden to establish a foothold in the competitive New York market.

"Word-of-mouth from your friends is stronger than any other form of advertising in my opinion," he told CBS News.

"[Foursquare is like] a digital wallet that you can carry around and its constantly rewarding you," Holden added.

To date, foursquare has quickly established itself as the leader of geosocial marketing. The startup has more than 10 million users nationwide.