The company announced that it recently raised another $200 million at a valuation of $5 billion, which means that it is the most valuable venture backed start up at the moment.
Seven months ago Pinterest had raised $225 million at a valuation of $3.8 billion which means its value has risen by 32 percent in these seven months.
Pinterest is a service where users can build photo albums comprising of ”pins”. The company has processed more than 30 billion pins since it was launched in 2010.
Pinterest has recently started selling ads and companies like Gap, Lululemon, Kraft and General Mills have paid between $1 million to $2 million to run ads on Pinterest for 3 to 6 months.
Venture capital firms place a high premium on services with growth potential even in the dwindling stock market prices. Home rental service Airbnb raised new investment at a valuation of $10 billion.