Pinterest raises $200 million, now worth $5 billion
FORTUNE — Pinterest raised $200 million in new capital, the company has announced. This recent funding brings the company’s valuation to about $5 billion, making it one of the most valuable venture-backed startups in the world.
Pinterest’s valuation has grown 32% since seven months ago when the company received $225 million in funding that brought its total worth to $3.8 billion. San Francisco-based Pinterest has raised $764 million in total, mostly from venture capital firms such as Bessemer Venture Partners and Andreessen Horowitz; even investors such as Japanese e-commerce firm Rakuten have provided cash.
The startup plans to use the additional cash to expand its global presence. It already tailors its service to 31 countries and has offices set up in France, the U.K. and Japan.
The 4-year-old scrapbooking site still makes little revenue even while it’s valuation soars as investors pour money into the company. Many deep-pocketed investors are still willing to provide huge funding for tech startups with high growth potential, even as several public tech companies’ stocks slide amid a larger market decline.
Pinterest recently started selling advertising to major corporations such as General Mills, Gap and Kraft, charging up to $2 million for three- to six-month commitments, The Wall Street Journal reported. Many advertisers see Pinterest as a more valuable advertising host, since its users often purchase products pinned on the site — and this could allow the company to start charging ad rates that are higher than other social sites.