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Pinterest to get $100m boost from Rakuten

     
12:49 pm on May 17, 2012 (gmt 0)

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[bbc.co.uk...]

Social networking service Pinterest is to receive $100m (63m) in funding from Japanese internet retailing giant Rakuten and existing investors.

....

Analysts subsequently put a value on the two-year-old company of $1-1.5bn.
4:23 pm on May 17, 2012 (gmt 0)

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[youtube.com...]

(It's highly relevant to the current VenCap and IPO strategies).
4:26 pm on May 17, 2012 (gmt 0)

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It does seem like an extraordinary valuation, I agree.
7:30 pm on May 17, 2012 (gmt 0)

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Without users the site is worthless so the valuation is based on users. That makes the valuation inherently dangerous given that users are fickle and new sites spring up all the time.
8:23 pm on May 17, 2012 (gmt 0)

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I've always been curious and clueless about this kind of valuations, sites with no ads, no fees etc. If someone out there could point some reasons or readings why this is worth so much (besides "potential" future applications) I mean practical reasons... I will be very thankful.

A friend once said that ideas/tools are not so important on what problems they solve but how high the price you manage to sell them.
8:33 pm on May 17, 2012 (gmt 0)

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Without users the site is worthless so the valuation is based on users.

you could say the same thing about facebook

but its nice to know that we can all be billionaires in two years time... we just need a good idea (and an easy one - pinterest is pretty simple really)
9:27 pm on May 17, 2012 (gmt 0)

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Rakuten is #1 japanese shopping mall, they've got tons of money. They bought Buy.com , Linkshare and a few others. It is no doubt they know what they are doing on the web.

I am guessing with them being outside US they can easily avoid trademarking issues that should burn Pinterest.

I am thinking a bunch of...let's use the word "clever".. VCs sold this one to Rakuten. On the other hand, Rakuten could start pinning all images from their shopping sites for free now, basically saturating the web and improving its Buy.com position in US against Amazon.
12:16 am on May 18, 2012 (gmt 0)

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but its nice to know that we can all be billionaires in two years time...


Absolutely, its still very possible. The right idea with opportune exposure and you can make something fantastic. Big corporations are well funded and want the same as well so the golden nugget ideas, like during the gold rush, are few and far between. In that context Pinterest is a winner, but a long term winner or a fad?

Would you all like to come to my house to stare at the rock in my front yard? If enough people do it and I can copyright something about it the valuation will follow, baby! What should I call it, a brandable name is a must... hmmm. Excuse me while I go invite Sylvester Stallone over, he might let me play up the name Rocky if I ask nicely...
1:10 am on May 18, 2012 (gmt 0)

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The strong Yen has made it difficult for things to be produced in Japan. It is cheaper for Japanese companies to purchase foreign assets to expand their influence. Rakuten is a fairly young company that groks the web and the importance of being international. I hope it works out for them. However, I think the valuation based on this investment is a tad absurd.
3:07 pm on May 18, 2012 (gmt 0)

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The data they retain is worth mad money...same as Facebook.
7:28 pm on May 19, 2012 (gmt 0)

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Don't compare facebook and pinterest. Both are different.

Rakuten can make more than $100m with pinterest; if they know how to do it. It's very easy for them if they have right knowledge about pinterest.
8:06 am on May 21, 2012 (gmt 0)

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Well, they are first and foremost a web-based retail shopping mall. Funneling product clicks through their site would be an obvious way to recoup their investment...and then some.
2:55 am on June 21, 2012 (gmt 0)

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Yes Pinterest is an easy concept and we could all do it.

But the owners of Pinterest thought of it first (that's hard)

And they got to critical mass very quickly (thats very hard)
1:34 am on June 23, 2012 (gmt 0)

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And they are not making any money (that's easy)
3:50 pm on Jan 6, 2013 (gmt 0)

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Hmm.. so Facebook could have bought pinterest for just a wee bit more than it paid for hipstergram?
2:04 am on Jan 18, 2013 (gmt 0)

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Yes Rakuten are very powerful they have bought some major auction sites France and Germany.

They must have a LOT of cash.

They must also think they know the value of all those eyes looking at Pinterest EVERY day.
 

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