Pinterest Reaches $5B Valuation with New $200M Round
May 19, 2014
Pinterest has raised yet another humongous funding round, this time hauling in $200 million of Series F financing from investors including Andreessen Horowitz, Bessemer Venture Partners, SV Angel, Fidelity Investments, FirstMark Capital and Valiant Capital Partners, all of which have previously contributed funding to the company. Pinterest previously raised $200 million of Series D funding at a valuation of $2.6 billion in February 2013, and then raised $225 million of Series E funding at a $4 billion valuation eight months later. That means that the company has now raised about $625 million in a little over a year.
So, what is Pinterest doing with all this money? Is it planning to fill its offices with cappuccino machines, pool tables and big screen TVs? Well, one thing the capital is likely going towards is the company's shift to advertising. Pinterest has begun selling ads in the form of "promoted pins," which will allow brands to feature ads that will show up in users' search and category feeds. This will allow the company, which has produced virtually no revenue to date, to actually start making some money. Pinterest will also likely use some of the funds for product development and to accelerate international expansion, as it enters new markets.
To take a free look inside Pinterest's PitchBook Profile, which includes detailed funding history (with valuations), investors, service providers, management professionals and more, click here.