BY KATIE BRENNAN
Feb. 21, 2013
Pinterest is now a $2.5 billion company. The virtual pinboard site raised $200 million in a new round of funding. CNBC reports, it had some help.
“Hedge Fund Valiant led the investment group which also included existing investors Andreessen Horowitz and FirstMark Capital. Pinterest has grown pretty quickly since launching in 2010, it now has nearly 49 million users worldwide.”
Reports Pinterest was looking for funding had been circling the net for a few weeks, but a statement by Pinterest co-Founder Ben Silbermann made it official. He said..
“Our focus is on helping millions of people discover things they love and get inspiration to go do those things in their life. This investment gives us more resources to help realize that vision.”
Slashgear has details on how the site will use the funding.
“Pinterest is expected to use its new found $200 million to develop the product further and to accelerate international expansion. Expanding internationally would give the website more reach and greater impact.”
Bloomberg reports this funding makes Pinterest a top contender on the web.
“Pinterest is now worth more than publicly traded Internet companies Zynga Inc.,Yelp Inc. and Pandora Media Inc., even though it has yet to generate revenue.”
So with no revenue model, how did Pinterest grab the interest of these investors? Well, since Facebook’s IPO in May, which did not initially go well for the stock, many investors have stepped away from consumer-focused Internet companies. And The Wall Street Journal reports Pinterest is partnering with businesses, not just consumers.
“While Pinterest makes access to its service free, it's also been studying an advertising system and building relationships with businesses. Last year the firm made business accounts available, which enable users to do things like see which of their products are gaining the most attention on the scrapbooking site.”
Pinterest has seen rapid growth in the past few months.. it last raised money in May of 2012, which led to a valuation of $1.5 billion. Now, less than one year later, its at $2.5 billion.