You missed the point entirely. This is a convertible debt deal and as such is no...

seeingfurther on April 11, 2013 | parent | context | favorite | on: Foursquare raises $41 million Series D round

You missed the point entirely. This is a convertible debt deal and as such is not dilutive to common/employees. If FourSquare fails they lose everything. If FourSquare hits a homerun they benefit greatly. It's a very very smart move. (They meaning employees & management)