Pinterest Valuation Reaches $2.5 Billion After Its $200 Million Funding Spree
By Yannick LeJacq | February 22, 2013 3:43 AM EST
Pinterest has raised another $200 million in fundraising, bringing the company’s total valuation to $2.5 billion. The latest fundraising round was led by Valiant Capital Management, though existing high profile investors such as Andreesen Horowitz, Bessemer Venture Partners, and FirstMark Capital also participated.
"Our focus is on helping millions of people discover things they love," Pinterest chief executive office Ben Silbermann said in a statement. "This investment gives us more resources to help realize that vision."
The online image sharing and social networking service saw enormous growth over the past year -- jumping to 48 million monthly visitors last December compared to just nine million in the previous year, according to data provided by comScore (NASDAQ:SCOR). In a statement confirming the new valuation, which was first reported by AllThingsD, Pinterest said it plans to use the funding for expanding its personnel and international user base by focusing on “strategic acquisitions of both talent and technology.”
Launched in March 2010, Pinterest made its first acquisition last month when it purchased the recipe site Punchfork. The company’s last round of fundraising took place in May 2012 and was led by the Japanese e-commerce company Rakuten (PINK:RKUNF). That fundraising round brought in $100 million, putting Pinterest at a $1.5 billion valuation with $140 of total capital raised. The company has now raised approximately $337 million in financing.
Pinterest’s commercial and cultural expansion follows in the footsteps of other prominent Internet businesses such as Facebook (NASDAQ:FB), Groupon (NASDAQ:GRPN) and Zynga (NASDAQ:ZNGA), all of which received substantial investment through private fundraising before making initial public offerings.
Given the financial backlash against these companies -- all three still remain below the initial market values set by their IPOs -- Pinterest, however, might avoid rushing to market. Even Twitter, its fellow rising star of social media that’s already valued at $11 billion, has only offered the smallest of hints about its plans for an IPO. And as Facebook has struggled to enhance its own e-commerce offerings by even offering Pinterest-like features, a social network still in its startup stage of development has the advantage of experimenting with different monetization tactics and business strategies before facing all the pressures of a public company. Seeing the misfires of the past generation of Internet firms, these companies are realizing the benefit of taking their sweet time.
To contact the editor, e-mail:
Most Popular Slideshows
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Justin Bieber Shares A Sexy Photo From Bathroom After Selena Gomez Was Spotted With Orlando Bloom: Bieber Reportedly Jealous Of Bloom
- Croatian Boxer Banned For Life From Sport After Vicious Attack On Polish Referee [VIDEO]
- Seven Weird Things Banned by Governments
- NBA 2014-15 Team Preview: Miami Heat
- Nina Dobrev: 'Vampire Diaries' Actress Joins Bystander Revolution Campaign Against Bullying [WATCH VIDEO]
- Chilling: New ISIS Video Addresses Australia; Aussie Teen Delivers Message
- The Pirate Bay Blockade: Cost Of Blocking Websites Like TPB Is Ridiculously High
- Xiaomi Mi4 And MiPad Prices Likely Slashed, Thanks To Rivals Oppo, OnePlus And Meizu
- Virginia Woman Who Posted Naked Image Of Ex-BF’s New Partner 1st Person Charged Under Revenge Porn Law
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop