Pinterest raised $200 million in new capital which brings the company’s valuation to about $5 billion, making it one of the most valuable venture-backed startups in the world.
The San Francisco-based company has raised $764 million in total, mostly from venture capital firms such as Bessemer Venture Partners and Andreessen Horowitz; even investors such as Japanese e-commerce firm Rakuten have provided cash.
The latest funding attracted existing roster of investors, a group that includes SV Angel, Bessemer Venture Partners, Fidelity, Andreessen Horowitz, FirstMark Capital, and Valiant Capital Partners.
The series F raise was done at a pre-money valuation of $5 billion. The last time Pinterest raised money, it carried a valuation of $3.8 billion. That was just seven months ago.
The startup plans to use the additional cash to expand its global presence. It already tailors its service to 31 countries and has offices set up in France, the U.K. and Japan.
The other major focus for the company will be focusing on discovery tools, including its new Guided Search feature, and in building out its monetization operations.
The 4-year-old scrapbooking site still makes little revenue even while its valuation soars as investors pour money into the company.
Pinterest recently started selling advertising to major corporations such as General Mills, Gap and Kraft, charging up to $2 million for three- to six-month commitments, The Wall Street Journalreported. Many advertisers see Pinterest as a more valuable advertising host, since its users often purchase products pinned on the site — and this could allow the company to start charging ad rates that are higher than other social sites.