Pinterest recently announced a new 150 million dollar round of equity financing at a 12.3 billion dollar valuation.
Beyond the head-spinning maths, what’s more interesting is the reason why (or what for) Pinterest raised a new round of equity financing.
It actually has to do with two things we mentioned on this blog in the past:
- Pinterest’s growth which, while being significant and impressive, may remain below some leaked forecasts and did not meet investors expectations, according to TechCrunch.
- Pinterest’s latest discovery features, giving the network an edge in terms of image recognition and visual search.
“What If”: Pinterest’s first ad campaign ever
So, Pinterest’s latest round of equity financing should contribute to sustaining and accelerating the growth of the platform, by attracting more users and more advertisers, thanks to unique visual search capabilities.
What’s in it for Social Media Managers: a strong sign that Pinterest is not going anywhere and an incentive to explore what the platform can offer in terms of organic and paid reach.