Pinterest is now valued at $3.8 billion after its most recent round of fundraising generated $225 million. It’s an impressive feat for a company without any revenue. Note: that’s not no profit. That’s no revenue whatsoever. Though that may change! After all, the company recently announced that it’s beginning an experiment with advertising via “promoted pins,” which reflect similar practices by other social media giants—ads that blend in with unpaid content from people you follow, like you’d get on Facebook.
When Pinterest says “experiment,” they mean it. As CEO Ben Silbermann said last month, “Nobody’s paying for anything yet — we want to see how things go and, more than anything, hear what you think.”
Is it a little frightening how normal that statement seems nowadays? Pinterest’s profitless growth is totally in line with the norm, with Amazon still operating at a loss and Twitter hoping to maybe turn a profit in 2015. At least those two have ads going already.