The company has based the round on its share price from two years ago, an April 2015 series G, where the company was valued by investors at $11 billion. It has filed securities documents associated with financing, which were analyzed by private stock market firms.
In addition, the company decided to raise the latest funding at a higher valuation than its prior round because the number of shares in the company has been increasing over time, in large part due to the issuance of stock to employees as compensation.
In February, the Hartford Financial Services Group, a mutual fund and an investor in Pinterest, valued the company at $32.31 per share, a 10%, markdown from the Series G investment, according to Pitchbook. The company has raised nearly $1.5 billion to date from investors such as Rakuten, Andreesan Horowitz, Bessemer Venture Partners and SV Angel.
The company, which has been founded since 2010, has been overshadowed by its faster-growing competitors. In the time since its last fundraising, Snap went public, Facebook-owned Instagram reached 700 million users, and Google built competitive image-based shopping technology.
Choosing to raise more money now could delay a potential initial public offering as its business model matures. The company produces revenue by selling ads that look like posts on its site.
The company, which calls itself a digital catalog of ideas, has 175 million users which use the site to collect and post images related to recipes, clothing, furniture, travel, do-it-yourself guides, lifestyle inspiration and other areas.
Pinterest’s buyable pins make it easier for users to purchase items on
“In the last year, we have nearly tripled users in Germany and Brazil and more than doubled in France and Japan,” a spokesperson said.
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