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The justification for this frothy valuation is that somehow they will turn the browsers of pictures into buyers of products. It is a difficult task and wish the
by abijlani 14y ago
The justification for this frothy valuation is that somehow they will turn the browsers of pictures into buyers of products. It is a difficult task and wish them luck but I still don't understand why they would need $120 MM to accomplish it.
- drivebyacct2 14y agoWhy is that the justification exactly? Seems like they have a variety of monetization options. That's one, but it's not the one I was thinking of and it would require a lot more work with more risk than other alternatives.
- dcaranda 14y agoWe don't know if some of the $120MM is for secondary / cashing out existing investors / employees.
- fusiongyro 14y ago"Turning the browsers of pictures into buyers of products" is an excellent turn of phrase, but I think it kind of misses the point. In actuality, Pinterest is about to become the HSN of the internet. It plays to all of Facebook's weaknesses: - Pinterest makes money on sales rather than ads, through referral links - Pinterest makes identical money on users with accounts and anonymous users - Pinterest has exactly the users who have money and want to spend it - Pinterest runs on greed, envy and materialism rather than lust and boredom It will be interesting to see how it plays out. They've already had a big setback in that they were rewriting or inserting referral links and they had to stop. I'm not sure what the conception is moving forward, but I'm sure $120M will help them figure it out. Unlike a lot of the other big names being bandied around now, there is a sense that they're trying to build a company rather than find the fastest largest way to sell out.
- mibbitier 14y agoThey need it to IPO or to sell to a bigger fool.