Cool. I never thought Pinterest would reach this far. It's promising for all web startups.
EDIT: Removed because I'm tired and my reading comprehension is crap.
Pinterest Completes $200M Funding at $2.5B Valuation
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Re: Pinterest Completes $200M Funding at $2.5B Valuation
#32Can someone shed light on how Pinterest and Instagram can be worth billions? But Reddit is only worth 400m?
Reddit still, strangely, quizzically, confusingly, maddeningly does not monetize on outbound links.
Here: http://www.reddit.com/r/shutupandtakemymoney
Or Here: http://www.reddit.com/r/buyitforlife
Every single link to amazon etc. via reddit should be earning them money via viglink or their own program.
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#33The amount of ideas my wife, her sister, and many other women in their lives get from Pinterest is amazing. It's a household name now in our family. From birthday gifts to children's crafts, I'd venture to guess
at least 1 idea every 1-2 days.
There's something there in terms of monetization. I'm just not sure what yet.
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#34Always great to hear about success coming from humble beginnings: Pinterest used Hacker Dojo as their primary workspace in late 2009, and hired both of their first two engineers from the Dojo's membership. Source http://www.hackerdojo.com/InvestinStartups
(Writing this as I take a break from working on my startup at the Hacker Dojo...)
Ben/Pinterest are probably the most well-known ex-residents of the Hacker Dojo. It is an awesome place to work, and there lots of promising startups that have set up shop here.
Speaking of hiring engineers, the 2013 Hacker Fair is coming up: http://www.hackerdojo.com/HackerFair3
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#35I 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…
Not being snarky but is there a profitable website who's primary source of revenue is based on data mined from their users? I keep hearing about this "data mining" revenue stream but can't think of a place where its worked. That being said Pinterest seems like one place where it might.
Google? Targeting interests is a solved problem.
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#36Can someone shed light on how Pinterest and Instagram can be worth billions? But Reddit is only worth 400m?
This is a complicated question with many angles. First, Reddit is now apart of bigger company. Obviously, this changes anything to do with valuation. Do investors want a "piece" of a company that is within a bigger company? Maybe, but if they do the valuation is going to be a lot lower compared to if Reddit was independent. The other issue is that Reddit makes money therefore the valuation is based on earnings. Their…
If they were an independent company and didn't have any revenue history to go by I think they would be worth more. Part of the Pinterest valuation would be speculating on how much they could generate through various forms of advertising.
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#37Two 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".
That's smart of them. Anyone remembers 2007-2008? Even blue chip companies had to beg and give their proverbial first born to refinance their debt.
A billion is not what it used to be, was my first thought but who can blame Pinterest.
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#38I think Pinterest is in a great condition ... at this time. Like they have tons of users who religiously use their product, and it's actually coupled with intent to buy, which makes monetizing easy. However, you can't change the fact, that pinterest is riding on a "trendy" wave right now. There is not a whole lot that keeps you threre. Just in two years, there can be another spot where all the women in world woo abou…
I thought the problem with Pinterest was that "intent to buy" was actually really low compared to other traffic sources. I know its an old article, but has anything come out contradicting it? http://www.forbes.com/sites/jjcolao/2012/07/13/new-data-show...
This is just one data point, but my mom and I run a cooking blog that makes a decent amount of money from the Amazon affiliate program, and people from Pinterest definitely come to her site with an intent to buy. Given how much money we making from Pinterest visitors, it doesn't seem crazy to think that they could figure out a way to monetize their user base.
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#39Earlier quoted context omitted.
I thought the problem with Pinterest was that "intent to buy" was actually really low compared to other traffic sources. I know its an old article, but has anything come out contradicting it? http://www.forbes.com/sites/jjcolao/2012/07/13/new-data-show...
At this point the data points coming out are almost conjecture. Here's something more recent that says almost the opposite: http://www.entrepreneur.com/article/222740 I know they're also making a new push specifically for brands to be able to manage content and traffic more easily: http://business.pinterest.com/ Given the new focus on businesses and the scale at which Pinterest already operates, the $2.5B isn't so ha…
I imagine it varies a lot by category/board. Cat boards (which is what I use it for) = no intent to buy. Cooking implements = high intent to buy. Women browsing $20k dresses, somewhere in between.
Re: Pinterest Completes $200M Funding at $2.5B Valuation
#40Surprise, suprise Andreessen Horowitz involved in another crazy valuation.
They are throwing lots of money trying to make a name as VCs, that's my opinion.