Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Pinterest Funding Led by Fidelity Values Startup at $3.8 Billion

Source: Pinterest
By
  • Bloomberg

SAN FRANCISCO, United States — Pinterest Inc. said it raised $225 million in a financing round that values it at $3.8 billion, as the Internet-scrapbooking startup seeks to expand and develop a model for generating revenue.

The San Francisco-based company said the funding was led by mutual-fund firm Fidelity Investments, a new investor, with participation from existing investors such as Bessemer Venture Partners and FirstMark Capital. The round brings Pinterest’s total funding to $565 million and boosts its valuation from $2.5 billion during a February financing round.

“We hope to be a service that everyone uses to inspire their future,” Pinterest Chief Executive Officer Ben Silbermann said in a statement. “This new investment enables us to pursue that goal even more aggressively.”

Pinterest remains near the forefront of a pack of fast- growing Silicon Valley startups that also includes online- storage startup Dropbox Inc., among others. Pinterest has racked up funding as it rides a surge of user growth, even as it is still testing advertising and ways to make money. The site, which is free for consumers, lets people share images of objects or projects by “pinning” pictures online.

ADVERTISEMENT

Internet Fervor

The financing comes amid renewed investor appetite for Internet companies, with microblogging service Twitter Inc. preparing to go public. Confidence among Silicon Valley’s venture capitalists rose to a six-year high in the third quarter, with more opportunities and a better environment for public offerings, according to a September survey conducted by Mark Cannice, a professor at the University of San Francisco School of Management.

At the new valuation, Pinterest is now worth more than publicly traded Internet companies Zynga Inc. and Angie’s List Inc.

Vince Loporchio, a spokesman for Fidelity, declined to comment.

Pinterest said it plans to use the new capital to expand internationally. The startup recently rolled out sites in the U.K., Italy and France, and is planning to start its service in 10 more countries this year,

In addition, Pinterest said it is working on investing in its mobile service, testing its advertising and revenue model, and spending on technical infrastructure. The company also said it may use the money on “strategic acquisitions of both talent and technology.”

The investment was reported earlier by technology blog AllThingsD.

By Pui-Wing Tam, with assistance from Christopher Condon in Boston; Editors: Pui-Wing Tam, Jillian Ward.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Technology
Analysis and advice on how technology is disrupting fashion and creating new opportunities.

Using AI to Create Customer-Centric Business Strategies

At The Business of Fashion’s Professional Summit in New York last week, Sona Abaryan, partner and global retail and luxury sector lead at tech-enabled data science firm Ekimetrics, shared how businesses can more effectively leverage AI-driven insights on consumer behaviour to achieve a customer-centric strategic approach.


Case Study | How to Turn Data Into Meaningful Customer Connections

Before fashion businesses can put artificial intelligence to work or target the right shoppers online, they need good data and a deep understanding of who their customers are and what they want. This case study offers a guide for brands that want to truly know their customer, allowing them to make smarter decisions that serve shoppers and drive results.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections