With the IPO of Facebook a mere two days way, Pinterest announced that it has raised $100 million at a valuation of $1.5 Billion. This comes as quite a surprise as there had been speculation that it was raising around $50 Million at $1 Billion valuation. But it also doesn’t come as a shock. Pinterest is one of the few free social networks making money and driving engagement between its users. We also now live in a Post-Instagram world. Where a simple mobile first company was able to have an exit of $1 Billion to the 500 pound gorilla in the social networking space, Facebook.
With this valuation, it makes it clear that it’s not looking for an exit. It’s looking towards IPO. It took Facebook 8 years to go public and has been mostly anticipated for the past 2 years. But it has a product that has stood the test of time.
Can the same be said about Pinterest?
Source: Wall Street Journal