Report: Andreessen Horowitz to invest in Foursquare

TechCrunch reports that Andreessen Horowitz will be a major partner in Foursquare’s newest round of funding, according to their sources. It appears Foursquare finally accepted additional venture capital after buyout talks with Yahoo and Facebook faltered. It was only yesterday that rumors were flying about a possible Facebook acquisition.

The company’s valuation is reportedly at $80 million, which apparently caused a number of other potential investors to drop out of this round. Existing investors O’Reilly AlphaTech Ventures and Union Square Ventures will likely also be investing heavily in this round of funding. They’ve reportedly offered bridge investments in recent weeks as Foursquare’s initial funding began to dry up.

Andreessen Horowitz is also an investor in Skype and Zynga, among many others. Founding partner Marc Andreessen (of Mosaic/Netscape fame) sits on the board of Facebook, meaning he likely has a good feel for the effect Facebook’s coming location product will have on Foursquare. His willingness to invest in Foursquare at this valuation signals that Foursquare and Facebook are more likely to be partners than competitors in the location arena.

At this time, it’s not clear if the final terms of the round have been set.