Pinterest, one of the most valuable startups in the US, raised $150 million in private funding at the valuation of $12.3 billion on June 6th, an increase of 12% from the last funding round.
Thirteen funding rounds in eight years
From 2009 to present, photo-sharing application company Pinterest has gone through 13 rounds of funding. The most recent raised $12.3 billion, a slight increase on the $11 billion raised in the previous round owing to the growth of the number of shares.
Reviewing its funding history, the list of previous investors includes Goldman Sachs, SV Angel, Andreessen Horowitz and Bessemer Venture Partners. In 2013, Pinterest made its first acquisition, to date acquiring 14 companies including Livestar, Hackermeter, Instapaper and Jelly HQ ‒ a small search-engine company founded by Biz Stone ‒ its latest purchase.
Pinterest-style business model
On the one hand, Pinterest makes money from embedded ads within traditional media websites. Pinterest also has the Pinterest Shop mobile app where one can purchase ‘buyable pins,’ that allow people to find and buy products on Pinterest.
“Connecting people with their interests, rather than with their friends” is Pinterest's principal aim. CEO Ben Silbermann summarized the company as a "cataloge of ideas," rather than as a social network. So far, this pinning platform has more than 175 million active users, attracts more females than males, and over half of users are abroad.
The platform is improving all the time. In November 2015, Pinterest implemented a feature which allows users to search with images instead of words. In August 2016, Pinterest launched a video player that enables users and brands upload and store clips of any length. After the funding in June 2017, Pinterest said it would use the funds to invest more heavily in visual search technology and in improving local content outside the US.