GO
Loading...

Online Scrapbook Pinterest Seeks Funding at $2 Billion Valuation: Source

Wednesday, 6 Feb 2013 | 1:54 AM ET
Pinterest
Source: Pinterest.com
Pinterest

Online scrapbook Pinterest is trying to raise a new round of funding that would give it a valuation of $2 billion to $2.5 billion, the Wall Street Journal reported on Tuesday.

The company declined to comment on any fundraising efforts.

The talks are fluid with no investment finalized, the Journal said in its report.

(Read More: Pinterest Opens the Business Floodgates … Finally)

Pinterest, which allows users to create online bulletin boards based on various themes such as travel, decorating, or sports, is part of a group of Internet companies that offer twists on Internet networking among various groups. They typically have little discernible profit or revenue, but have landed some outsized investments from venture capitalists.

They include private social-network Path, which raised $30 million at a valuation of $250 million last year; question-and-answer site Quora, which raised $50 million at a $400 million valuation last year; and microblogging service Twitter, which raised $400 million in new funding and another $400 million to buy out existing investors at an $8 billion valuation in 2011.

(Read More: Facebook vs. Twitter: The Real-Time Battle)

Since Facebook's May initial public offering, which saw the stock fall far below its offer price before rebounding in recent months, many investors have cooled on consumer-focused Internet companies.

But Pinterest's rapid growth since its 2010 launch may make it an exception. It now has 28 million users, according to consultancy comScore.

The start-up last raised money in May 2012 at a $1.5 billion valuation in a round led by Japanese e-commerce site Rakuten.

(Read More: Retailers Are Hoping for a Pinterest Holiday)

Its venture backers include Bessemer Venture Partners, Andreessen Horowitz, and FirstMark Capital.

  Price   Change %Change
FB
---
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.

Technology