Digital pinboard Pinterest is going to be releasing an API very soon, and VCs are champing at the bit to invest in startups who will build on top of it.
Later today, I’m hosting a panel on investing in social commerce at our Social Commerce Summit with four venture capitalists. As prep for the panel I spoke with the VCs, and one of the biggest takeaways was the excitement around Pinterest.
Why are they excited about Pinterest? Because it has developed into a site where people are aggregating products they like. And it’s driving real traffic to retail sites. However, Pinterest hasn’t been able capitalise on that interest.
When the API is available, Adam Ludwin at RRE, says he’s interested in entrepreneurs who can build on top of the platform, who can “close the loop” and figure out a way to monetise the interest around products on Pinterest. He’s interested in startups that will provide tools to facilitate transactions on and through Pinterest.
Brian O’Malley at Battery Ventures compares Pinterest today to Facebook in 2006. It’s less crowded today than it will be in the next five years, which means it’s more focused and defined, and there’s more room for startups to build interesting applications for Pinterest.
We’ll have more on Pinterest and what VCs are looking for in the social commerce world this afternoon at the conference.