An Investor Just Emailed Us To Ask If He Should Pull The Trigger On Pinterest At A $1.5 Billion Valuation

Pinterest image two

Pinterest, the fast-growing social media site where users can collect and share images, is not done raising money at a $1.5 billion valuation, we’ve learned from sources.

A couple weeks ago, news broke that Pinterest had raised ~$50 million from Japanese e-commerce company Rakuten at a $1.5 billion valuation

But we’ve learned that Pinterest is still bringing individual investors into the deal. 

In fact, one potential investor recently emailed us to ask:  “What do you think of the valuation in light of all the Facebook implosion?”

Probably this person could get better advice elsewhere.

But that didn’t stop us from sharing our thoughts!

Here’s what we told this person:

If I were investing at that valuation, I’d want to know two things…

  • Is user-growth back? (It slowed this spring after all the hype died down).
  • Do they have solid proof to show that browsing Pinterest actually leads to people buying things online? 

If the answer to those questions is yes, then the valuation is probably fine.

You’re banking on a 5X return?

I can imagine Google, Facebook, Amazon, and Microsoft would consider buying Pinterest for $8 billion if it has tons of users (100 million+) and actually generates commerce.

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