Pinterest, the online digital catalog of inspiration and ideas, announced it raised $150 million in venture capital to help pay for its visual search campaign. The company released a statement stating it raised the capital based on a $12.3 billion company valuation.
According to reports, the company raised the capital at the same share price as it did back in April of 2015 when the company’s valuation stood at $11 billion. The company reports the higher valuation was due to an increase in the number of shares currently outstanding. Pinterest also stated it started issuing stock to its employees as part of their compensation.
The Hartford Financial Services Group valued Pinterest’s stock price at $32.31 per share. Hartford is a mutual fund company with an investment in Pinterest. As of 2017, Pinterest has raised close to $1.5 billion from venture capitalists and investors, including capital from Bessemer Venture Partners, SV Angel and Rakuten, Andreessen and Horowitz.
According to Forbes, Pinterest has 175 million users who log into the platform monthly. People use the platform to find and save “pins” for such things as recipes, travel, furniture and do-it-yourself guides. The company uses “buyable pins,” which gives users the capability to find and purchase items. Pinterest also generates income from advertising revenues. Pinterest states it hopes to generate $500 million in income in 2017. The company earned $300 million in 2016 and $100 million in 2015.
Statistics show that people who use mobile devices to search for items on Pinterest increased by 40 percent compared to the same time last year. The company reports that revenues have doubled on individual search queries. The company plans to use the new round of funding to enhance its visual search tools.