Pinterest is reportedly in talks to raise $500 million in funding. If successful, that would value the site that allows consumers to virtually pin items to a virtual board at $11 billion and effectively doubles the $5 billion valuation Pinterest achieved when it closed on a round of $200 million back in May. Why is Pinterest such a runaway hit? It provides pinners an easy way to go back to something they liked on a site AND most importantly, provide context. Let’s say for example, you are using Pinterest for making smoothies, a recipe Pin will list ingredients and cook times. Why does Pinterest need the money? Well it is transitioning to a destination, where once you’ve pinned an item, you may want to go the next step and buy it. If you’re looking for a Vitamix blender, a Product Pin will list price and availability. Maybe you want a fitness app to go with it. ‘App pins’ lets users search for apps and download them directly from the Pinterest app without ever leaving to go to the App Store.
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