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Pinterest raises $200M Series D

by Eric Vermilya  |  Published February 21, 2013 at 2:10 PM
In another sign that venture investors are still willing to shower money on fast-growing, marquee social media, Pinterest Inc. has raised a $200 million Series D round, the company confirmed. This gives the San Francisco-based company a $2.5 billion valuation, not bad for a business that has yet to define a significant revenue model.

New investor Valiant Capital Management LP led the round. Existing investors Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital also participated. With the new round, funding totals $338 million. The company was founded in 2009.

Acquisitions of both "talent and technology" are included as possible uses of the new capital.

Pinterest operates as a kind of online scrapbook and wish list, where participants can "pin" photos on a virtual board, gathering and sharing everything from dream vacations to an upcoming birthday party, from a shopping list to new hobbies.

The site has vaulted in popularity and is now one of the most heavily used on the Web. It claimed more than 27 million unique visitors at the end of last year and is largely titled toward women, 80% of all participants, according to some accounts.

How much money the site garners and from what sources remain a mystery, considering the only obvious revenue base is affiliate fees. One back-of-the-envelope analysis last year suggested annual revenue of $45 million, an estimate some commentators believed was way too high.

Tags: Andreessen Horowitz | Bessemer Venture Partners | FirstMark Capital | Pinterest Inc. | Series D | Valiant Capital Management LP

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