Pinterest was able to raise new capital in the amount of $200 million the company announced on Thursday. The recent capital brings the valuation of the company up to over $5 billion, which makes it one of the most valuable startups that is venture backed globally.
The valuation of Pinterest has increased by 32% since last October when the business received funding of $225 million that brought the company worth to just under $3.8 billion.
Pinterest, based in San Francisco has now raised over $764 million, mostly from firms in venture capital such as Andreessen Horowitz and Bessemer Venture Partners. Investors such as Rakuten the e-commerce company in Japan has even given funding.
The startup will use the new capital for expanding its presence globally. It tailors its business to 31 countries and currently has offices in Japan, Frances and the UK.
The four-year old site still earns little revenue even while its value soars as more and more investors continue pouring money into it.
Many investors with deep pockets are willing to give huge funding for startups in the tech field that have high potential for growth even as a number of public tech firms’ stock falls amidst a larger decline in the market.
Pinterest just recently began selling advertising to large corporations like Gap, Kraft and General Mills. The startup is charging as much as $2 million for a commitment of up to six months, reported a large industry newspaper.
A number of advertisers look at Pinterest as a valuable host for advertising, since the site’s users often buy products that are pinned on the website. This could allow Pinterest to begin charging ads rates higher than what are currently being charged on other large social media sites.
However, much will depend in the long run on how long funding can be maintained while the company continues to lose money and its revenue remains low.