Pinterest used Hacker Dojo as their primary workspace in late 2009, and hired both of their first two engineers from the Dojo's membership.
Ben/Pinterest are probably the most well-known ex-residents of the Hacker Dojo. It is an awesome place to work, and there lots of promising startups that have set up shop here.
Speaking of hiring engineers, the 2013 Hacker Fair is coming up: http://www.hackerdojo.com/HackerFair3
1) They raised $100MM just 9 months ago. That's $300MM raised in
under a year. Money is stupid cheap and this is sorta terrifying.
2) The word "revenue" is not contained within FTW.
A billion is not what it used to be, was my first thought but who can blame Pinterest.
Like they have tons of users who religiously use their product, and it's actually coupled with intent to buy, which makes monetizing easy.
However, you can't change the fact, that pinterest is riding on a "trendy" wave right now. There is not a whole lot that keeps you threre. Just in two years, there can be another spot where all the women in world woo about their lives.
It's an inherent social problem which accounts for the so far pretty short lives of social companies. You gotta have to be able to tie/commit your users much like Facebook does (owning your diginal private life).
I know its an old article, but has anything come out contradicting it? http://www.forbes.com/sites/jjcolao/2012/07/13/new-data-show...
I feel its more saturated now but still a great platform to leverage.
I know they're also making a new push specifically for brands to be able to manage content and traffic more easily: http://business.pinterest.com/
Given the new focus on businesses and the scale at which Pinterest already operates, the $2.5B isn't so hard to believe.
There's something there in terms of monetization. I'm just not sure what yet.
How do they make money? Or is this valuation most likely based on the possibility of making money down the line?
According to this post, http://news.ycombinator.com/item?id=5254498, it seems like it is based primarily on potential revenue from data mining.
I keep hearing about this "data mining" revenue stream but can't think of a place where its worked. That being said Pinterest seems like one place where it might.
I'm confident that they can drive sales... however, can they do something interesting with that.
Or maybe Yahoo should buy them.
Edit - Interesting. If you do a google search for something like "Pinterest Cake" you can get past the registration.
It seems this "affinity data" model is the basis for the high hopes and high valuation: http://gigaom.com/2012/03/24/pinterest-weve-got-a-business-m...
They have little to no revenue at this point and no current revenue streams that point to being able to generate anything worthy of a $2.5b valuation. I guess my point was that I'd like to know what revenue streams they are anticipating creating that would warrant such a high valuation.
The investors at this stage still don't care about revenue. The main question is whether or not they can flip the investment to some other firm later (that is to say, will the picture look rosy enough in the future that someone else will buy in at a higher valuation).
Revenue starts to matter in the last round before the IPO (if it goes that route). If the sequence ends in an acquisition, revenues won't really matter..
The other issue is that Reddit makes money therefore the valuation is based on earnings. Their earnings might be low for the amount of traffic they get. Sometimes it's better to not generate any money because the valuation would be based solely user growth+engagement.
With this being said, if Reddit was an independent company then they too would have a crazy valuation. I am sure the founders think they sold way too early but at the time, it was the best option. Kudos to the buyer who didn't let it enter the M&A dead pool.
Or Here: http://www.reddit.com/r/buyitforlife
Every single link to amazon etc. via reddit should be earning them money via viglink or their own program.