Facebook has been poking around several Austin startup companies lately looking for talent acquisitions, and rumors are swirling that they’ve found a taker in beleaguered Gowalla. The company caused great excitement in the Austin tech community years ago when they relocated from Dallas to Austin, and garnered venture capital from top tier west coast venture and angel investors, spurning offers from locals. But no matter how hard they tried, they could never emerge from the shadow of Foursquare.
The check-in space seems to have turned into a “winner take all” market. The competitive landscape is littered with also-ran companies like Loopt, Whrrl, and now Gowalla. Sometimes you can hope for some industry consolidation, and the marketplace winner (Foursquare in this case) will go buy up smaller competitors. But not in this case.
The company attempted to pivot recently, with CEO Josh Williams presenting at TechCrunch Disrupt and talking about how Gowalla was turning into a travel and storytelling app. If there was still cash remaining in a company with no visible sign of revenue, there would be some runway to give it a shot. This is purely a guess, but either they’re out of money or they decided to give whatever remained back to investors.
Like most talent acquisitions, the team is expected to relocate to Palo Alto to be closer to Facebook headquarters. The speculation is that the team will work on the new Facebook Timeline. Not really a huge loss for the community, as Gowalla and it’s staff were mostly invisible and absent from the local tech scene, which is very odd for a “social” technology company.
Put yourself in the role of Gowalla CEO. What is your Monday morning quarterback advise that could have changed the fate of the company?
Related articles
- Facebook Buys Gowalla to Boost Timeline Feature (blippitt.com)
- Facebook buys location service Gowalla (salhajri.wordpress.com)
- Facebook Reportedly Acquires Gowalla, No Confirmation From Either Company (insidefacebook.com)
- Facebook acquires Gowalla to help with Timeline (digitaltrends.com)










