Pinterest $225 Million Raise and $3.8 Billion Value… Social Overload?

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By Jon C. Ogg Published

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Raising big rounds of capital for next generation internet and social media companies is becoming America’s favorite pastime. Now we have news out from multiple sources that Pinterest has raised another $225 million. More important and perhaps more impressive is that this values Pinterest at roughly $3.8 billion.

The financial backing came from Fidelity Investments, Bessemer Ventures, Benchmark, and others. Is it a coincidence that the investment came a couple of weeks before the expected twitter IPO? No coincidence at all. Word has been out that Twitter is just about to set its IPO price range in the next day or two.

The next generation web companies for social media have been dominating the interest of large investor groups for years now. Pinterest has gained in popularity and now it hopes to take advantage of a new ad platform. The images destination is also seeking to expand internationally to more countries than it already serves. More efforts to monetize are coming as well.

Our guess is that this is likely a last round to prep the company for an initial public offering in 2014, assuming all things remain solid ahead. What we have to ask is that when you read about users either closing accounts or ceasing to use this, is there becoming a social media overload in the making?

Here is an independent and outside take on the matter from Bloomberg.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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