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Pinterest Completes $200M Funding at $2.5B Valuation

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Re: Pinterest Completes $200M Funding at $2.5B Valuation

#4
Two notes:

  1) They raised $100MM just 9 months ago.  That's $300MM raised in 
     under a year.  Money is stupid cheap and this is sorta terrifying.
  2) The word "revenue" is not contained within FTW.
Instagram drew an incredible line in the valuation sand as a "comp".

Re: Pinterest Completes $200M Funding at $2.5B Valuation

#5
Pinterest as compared to Instagram is better deserving of this kind of valuation, I think. Their product is so good (pretty much a picture focused front-end) that thousands of others (myself included) have copied. And it works, brilliantly.

I'm confident that they can drive sales... however, can they do something interesting with that.

Or maybe Yahoo should buy them.

Re: Pinterest Completes $200M Funding at $2.5B Valuation

#10
I do not understand how the company is being valued at 2.5B. It doesn't look like even the business accounts at Pinterest have any type of fee associated with them.

How do they make money? Or is this valuation most likely based on the possibility of making money down the line?

EDIT:

According to this post, http://news.ycombinator.com/item?id=5254498, it seems like it is based primarily on potential revenue from data mining.

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