Social scrapbooking site Pinterest valued at $3.8bn

Pinterest co-founder Ben Silbermann at an event in 2012 Pinterest is a social networking site that acts like a virtual scrapbook

Related Stories

Social networking site Pinterest has seen its value jump by more than 50% to $3.8bn (£2.3bn) following its latest round of fundraising.

The three-year old company, which has yet to generate revenue, said it had raised $225m from a group of investors led by Fidelity Investments.

Earlier this year it had raised $200m, valuing the firm at $2.5bn.

Pinterest said it plans to use the new funds to further expand internationally and develop its mobile services.

"We hope to be a service that everyone uses to inspire their future, whether that's dinner tomorrow night, a vacation next summer, or a dream house someday," Pinterest co-founder and chief executive Ben Silbermann said in a statement.

"This new investment enables us to pursue that goal even more aggressively."

The San Francisco-based company is also looking at ways of monetising its service. Earlier this month the firm started testing the use of 'promoted pins' as a possible form of advertising.

Tech start-ups

Pinterest has secured its latest round of financing amid renewed demand for fast-growing interest companies.

Micro-blogging site Twitter, for example, is looking to raise about $1bn through a share offering later this year.

The homepage screen for Pinterest Pinterest is a social networking site that acts like a virtual scrapbook

There is strong interest in Twitter, which has seen its value skyrocket in recent years.

In the prospectus for its initial public offering, Twitter valued itself at nearly $13bn as of August. In July 2007, the firm was worth about $200,000.

Social networking giant Facebook listed in New York last year after raising a record $16bn.

The new valuation for Pinterest, which has 46m users, now makes it worth more than some publicly traded tech companies, such as mobile game developer Zynga.

But for many analysts, the big question is how the free service can make money based on a business that lets people share images of objects or projects by "pinning" pictures online.

More on This Story

Related Stories

More Business stories

RSS

BBC Business Live

  1.  
    TESCO 06:41: BBC Radio 4

    Plenty of advice for Tesco this morning. On the Today Programme Laura Lambie at Investec Wealth & Investment says: "People are shopping with their feet". Customers are buying cheap food at Aldi or treating themselves at Waitrose or Marks & Spencer with less money spent between, she says. Tesco "must try to get their strategy right".

     
  2.  
    TESCO 06:33: BBC Radio 4

    "The real problem for Tesco is it hasn't moved with the times," says Bruno Monteyne, a senior analyst at Sanford C. Bernstein on the Today Programme. "If you really want some great prices you can go elsewhere," he says. The company is facing "what we call a value-quality duopoly," says Mr Monteyne. Either people want cheap food or high-quality food "a bit of everything isn't good enough," says Mr Monteyne.

     
  3.  
    CHINA GROWTH 06:22: Radio 5 live
    China flag

    China's economy expanded by 7.4% in the first quarter of the year, better growth than many were expecting. But it is a slowdown from 7.7% growth in the final quarter of last year. On Radio 5 live, Oliver Barron, head of the Beijing office at the investment bank NSBO says the growth is "a little bit lacklustre". Policy makers are starting to worry "a little bit".

     
  4.  
    CHINA CURRENCY 06:20:
    Mainland China 100 Yuan notes

    The US has told China its currency must be allowed to rise if it, and the global economy, are to see stable growth. Unlike the euro and the dollar, the value of the yuan is not set by the market but is kept within certain limits of other world currencies. The US Treasury's twice-yearly report to policymakers says the yuan is "significantly undervalued".

     
  5.  
    TESCO 06:13: Radio 5 live

    On Wake Up to Money John Coll, an analyst at Kantar Worldpanel, puts Tesco's problems into some perspective. He remind us that they have more than double the market share of their nearest competitor. He says the are trying hard to be "dynamic and innovative".

     
  6.  
    JET FUEL 06:08: BBC World News
    Handout photo dated 15/07/13 issued by British Airways of a British Airways Airbus A380 flying over the cliffs at Dover

    Willie Walsh, chief executive of British Airways' parent company IAG, has been talking to the BBC about his company's project to buy jet fuel made from waste. The GreenSky fuel plant, in Thurrock, Essex, will supply about 2% of the fuel needed by the company. He denied the project was mere "greenwashing" and said it will have a real environmental impact. "This is turning waste that would have been producing methane into fuel," he said.

     
  7.  
    TESCO 06:03: Radio 5 live

    Expect to hear a lot today about the "Watford model" from Tesco's chief executive, Philip Clarke according to retail analyst Phil Dorrell on Wake Up to Money. Watford has a giant Tesco mega-store. It is a "step-change" but is a costly model, according to Mr Dorrell. He warns that chief executive Philip Clarke has just 16-18 months to improve Tesco's performance.

     
  8.  
    TESCO 06:00: Radio 5 live

    Some stinging words on Wake Up to Money for Tesco's management from Phil Dorrell who runs a consultancy called Retail Remedy. "The senior team is stumbling around looking for a code to get market share to where it should be," says. "Innovating is not going to get them out of the current troubles," he says. They need "a clear strategy of where they are going" and how they will "improve the vast majority of their stores," Philip says.

     
  9.  
    06:00: Howard Mustoe, Business Reporter

    Good morning! Get in touch via twitter @BBCBusiness and via email bizpagelive@bbc.co.uk

     
  10.  
    06:00: Ben Morris Business Reporter

    Tesco reports annual results at 07:00 and analysts are talking about a 10% fall in profits. Check-in with the Business live page for the details. And good morning!

     

Features

From BBC Capital

Programmes

  • French fashion designer Jean Paul Gaultier HARDtalk Watch

    French fashion designer Jean Paul Gaultier on why he uses unconventional models in shows

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.