Pinterest value leaps 52% to $3.8 billion
Pinterest, the social network that styles itself as a scrapbook, has seen its valuation soar by more than 50 percent in just eight months after its latest fundraising round valued the company at $3.8 billion.
The San Francisco-based company, which has yet to generate any revenue, raised $225 million in a round led by Fidelity Investments with participation from existing investors. The social network had already raised $200 million earlier this year at a valuation of $2.5 billion.
(Read more: Well, Pinterest had to make money at some point)
Ben Silbermann, Pinterest co-founder and chief executive, said the investment would enable the company to move more "aggressively", including funding its international expansion and attempting to monetize the service.
"We hope to be a service that everyone uses to inspire their future, whether that's dinner tomorrow night, a vacation next summer, or a dream house some day," he said.
The three-year-old company announced last month that it would start rolling out "promoted pin" adverts which appear in search results and category feeds. The site is already popular with some consumer brands as users often pin products they like and use it to compile wish lists of things they would like to buy.
The money will be used to develop the technical infrastructure to make the site faster and more reliable, push the monetization efforts worldwide and make "strategic acquisitions" of both talent and technology, the company said.
(Read more: Giving you the power of a tech giant)
Brian Wieser, an analyst at Pivotal Research, said it was a "very big deal for Pinterest".
"It provides them with more breathing room to evolve its commercial model," he said. "Towards that end it provides Pinterest with negotiating leverage should it intend to eventually pursue a trade sale or otherwise delay going public without an established business model."
More from the Financial Times:
Pinterest has 46 million users with the number using the site on mobile, which has recently been a closely watched metric on Wall Street, growing 50 percent since the start of the year.
Until this year, the scrap booking site had been US-focused but it recently launched in the UK, France and Italy and plans to roll out the service in 10 more countries before the end of the year.
Existing investors Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital, and Valiant Capital Partners all contributed more in the fundraising round.
(Read more: Pinterest makes moves to make money)
Other investors include Rakuten, the Japanese ecommerce company, which bought into the company in May 2012, and Valian Capital Management, a San Francisco hedge fund which led its last fundraising round.