... for that next dot com bubble to burst. These ridiculous valuations are just unsustainable.
Cupcake and kitten-laden photo site Pinterest has bagged $100m in funding from a bunch of investors led by Japanese online retailer Rakuten. Rakuten said today that it was heading up the multimillion-dollar handout with help from existing Pinterest investors Andreessen Horowitz, Bessemer Venture Partners and FirstMark Capital …
... for that next dot com bubble to burst. These ridiculous valuations are just unsustainable.
Too much paper money looking for interest, ANY interest. A certain percentage of that money is your pension fund.
Meanwhile, interest rates are kept low, low, low and money gushes out of central banks like coke out of a colombian drug outfit.
Can someone tell me what pinterest is for? I've so far been able to work out anything useful it does that you couldn't do just as well before?
Pictures of cakes and kittens as far as I can tell.
... and I don't understand how all those buns and kittens add up to $1.5bn before anyone asks
I use it to for interior design. I pin photos of a room, and products I'm thinking of buying to put in it, e.g. new curtains, paint colours etc. Others do the same thing for clothes. Basically it is a visual delicious, so just as useful as a bookmarking site, but more fun/comprehensible to non-geeks.
It is based on a popular US hobby called pinboarding. It is very popular, 80% of US users of pinterest are women.
As for commercials... They get lots of intent driven sales click throughs. http://www.shopify.com/blog/6058268-how-pinterest-drives-ecommerce-sales
The obvious business model is the same as Google's. Steal other people's content, let users organise it for you for free, then charge other people to get the resultant clicks.
Given all of the above, it seems a reasonable valuation.
Is it where people with no aesthetics post their Instagram horrors?
Thanks for the explanation. however, I still don't see how a site like that is worth over a billion. Seems pretty pointless to me...
Good explanation, although I would conclude differently. If it's an operation whose shtick is basically ripping off other people's content (and no doubt stripping EXIF/copyright info in the process... just checked - yep that's exactly what they do) then the valuation is an utter sham.
"snapping up the UK's Play.com last year for $39.3m"
This seems a remarkably low figure to me (particularly in light of Pinterest's valuation) as play.com is an excellent domain name, it's turnover must be ten time that price and it has every opportunity to expand.
Its because it has a calculable revenue stream so people can't BS the price into the stratosphere.
My coats the one with realist on the back
That's true, though having Amazon as your main competitor would knock any company's valuation.
Some sort of social network. Any sort of social network. If they're gonna throw crazy money around then I might as well cash in before the bottom falls out of it.
Here's an idea. punterest - a site where cranky old sods can exchange puns
more a sort of anti-social media site?
I think you'll find that punterest would mean something else entirely, while I wouldn't look into it now as it's defo nsfw, but "to punt" is common internet slang for enguaging the services of a lady of the night.
With the Reg's carefully honed target demographic may I suggest pubterest - a virtual boozer/tech forum/Paris Hilton fansite.
How about punternet.com? Oh, looks like that's already taken...
Anon, in case the wife is looking!
That is all
A site that became large because of massive copyright infringement. I wonder how they plan to monetize intellectual property that doesn't belong to them.
Same way as Google?
Start a site based on copyright infringements, and sell up before you get sued out of existence. See YouTube for the classic example.
Good article on the copyright issues at stake:
Pinterest needs to make an image fingerprinting scheme... so if images are resized or slightly cropped, they can't be uploaded again if they are taken down. It's not a terribly hard programming problem and it would solve the concerns of many. Better yet if they let photographers preemptively add their photos to the "no upload" database so we don't have to go searching for infringements.
I shouldn't have to add my photos to a 'do not steal' database to stop people stealing them - I don't have to add my TV or car to a 'do not nick' database. My photos are copyright unless I say they aren't!
Given the impossibility of stopping copyright rip-off ina dvance, the obvious alternative is for Pinterest to agree to pay ($100 a go?) for any copyright photos that appear on the site without authorisation.
That isn't going to happen for the same reason it doesn't happen on other user-generated content sites like Youtube. At least a database would give us a means to deal with it without wasting our time.
> I shouldn't have to add my photos to a 'do not steal' database to stop people stealing them
Sounds like old school copyright really.
Having a default of "this is not owned" really was a far less anti-social setup.
> I don't have to add my TV or car to a 'do not nick' database.
True, but if you leave the driver's door open, the keys in the ignition and the engine running in the middle of London, you might be politely called "negligent."
Do not put stuff you don't want people to take in a place where they can take it. Especially if its impossible to tell if they have taken it or not, until after it has gone.
Wasn't that lesson #1 when you first wanted to take toys to school?
Some of us make a living from things that we promote online, email me to see my portfolio or having massive watermarks isn't an option if you want to eat and pay your mortgage.
Ahh, facilitating copyright infringement and hoping idiots hand over money in return? One wonders how Rakuten managed to get so much money in the first place.
Not looking forward to this bubble breaking; idiocy like this is not going to do any favours to genuinely worthwhile startups in the near future.
I doubt that the bursting of bubble 2.0 is going to make much difference when it comes to getting funding for 'genuinely worthwhile' startups in the future. The dumb money that's funding the bubble would never have invested in them in the first place.
So it's only natural that a site where only 1% are women (being generous) would not understand it.
Surely there must be some overlap between the men who make up the 20% of the Pinterest user demographic and those who make up the 99% of the Reg user demographic?
If not, perhaps someone would care to bridge the divide?
Being in that overlap I may be able to help, but currently late for my knitting group. I'll be back later after cooking the children's dinner.
> If not, perhaps someone would care to bridge the divide?
I dare say most of us who are male and understand why Pinterest is popular find the thought of explaining it to the rest of you too wearying. "Look, here's an activity which I do not immediately find engaging. It must be incomprehensible!"
But those who want to take that first tremulous step into the exciting world of understanding other people might consider some related cultural activities, such as the taking and sharing of amateur photographs; reading store catalogs, fashion and "lifestyle" magazines, and the like; perusing the exhibits of a fair's awards hall. A few folks have engaged in that sort of thing over the years.
I personally have a Pinterest account only because my wife sometimes refers me to things she might want me to purchase (gifts, home furnishings, etc) featured therein. My leisure time is taken up by other activities I find more entertaining. But I don't have any problem understanding why others might enjoy it.
between interweb zuckerburg dollars and real life dollars?
By my reckoning after the purchase of Draw Something it was about fifteen to one. But this suggests it is closer to twenty five.
It's Nigerian Dollars.
I have no desire to be entertained during my "purchase phase". I just want to give the merchant my money in trade for thing(x). Don't fuck with me or upsell me. I give you money: You give me thing.
The big question is WTF are these people selling?
Firstly, Google+ was forced upon us, but nobody uses it, so don't start.
I run a big music & entertainment website at onedirection.net and up till today I've only ever saw the need to include Facebook, Twitter, and yes Google+ buttons, as they're the big three.
Pinterest has grown so fast though out of genuine word of mouth. Its a site that people like, and its a great alternative to both FB and TW. So much so that Ive now added a "Pin This" button on the site.
Guaranteed, we're seeing a viable new entry in the social media market here, not just an over-inflated-about-to-burst one.
And its quite cool too. Give it a go.
Fashion people use it to create mood boards, discuss trends etc. It's become essential in that field.
"..gushed in a canned statement.." -awesome
Anyone looking for similar sites to Pinterest now that they have burst the bubble:
Boxnutt (http://www.boxnutt.com): Reddit meets Pinterest
Pinspire - same as pinterest
Chill (http://www.chill.com): for videos
Trippy (http://www.trippy.com): for travelling
Gentlemint (http://www.gentlemint.com): for guys
Will you take a tenner for the lot?
I don't think you need to pay anything at all, from the title of the post I understand it's already yours, given to you as a welcome present for joining, or something like that!
Just saved you a tenner, you're welcome!
I thought it would be about pint... Of beer, that is.
No interest, then.
Perfect! Beat the rush and buy yourself some drawing pins and a cork panel at rock bottom prices right now!
Hmmm, so I write an app to share photos I might make a million. Something like Periodfest just for women? Meaty!
Allows users to upload pictures of their loved ones, kittens and nice stuff and then destroy them (in a virtual way) at the appropriate time.