that is all.
Kittens'n'cupcakes site Pinterest has won another $225m in funding that values the firm at an actually incredible $3.8bn. Earlier this year, the scrapbooking site got a whopping injection of $200m, which put the profitless firm at a valuation of $2.5bn. That means that a site which has made no money and consists of endless …
One thing in Pinterest's favour is that it attracts a primarily female audience so might be appealing to certain advertisers. However, many of the audience are probably on facebook and hence being targeted already! Therefore, probably only a minor advantage so the valuation looks a bit suspect to me!
See, the Royal Mail's mistake was charging money for their services. As soon as you try to make a profit, it becomes very clear to people just how much your business is worth.
In the New New New Economy, profit is something you chase after your IPO. You see, investors nowadays are very much in the mindset that information about the value of your business is totally optional. They'll take it if it's handy, but if it's not then it won't stop them.
And if you can't quite stagger to IPO under your own steam, Yahoo still has money left to bail you out. They're always looking for more repositories of cat pictures to slap ads on.
"We hope to be a service that everyone uses to inspire their future, whether that's dinner tomorrow night, a vacation next summer, or a dream house someday," top dog Ben Silbermann said
Anyone able to translate this for me? I can get by in marketing bollocks, at least I can order a beer, dinner or book a hotel room - but I'll admit I'm not fluent. But this one has me baffled.
Is he saying that Spartacus see cupcake, Spartacus think, "Ooh shiny! That's dinner sorted out." Then... Profit...
Or possibly, Spartacus see super-posh-yummy-house, Spartacus thinks: "Ooh shiny! If I go on a crime spree, or become a drug dealer (or investment banker), then I too can afford this lovely house. Yippee!" And... Profit...
Or is he in fact talking utter drivel? Answers on a postcard please, to: I Ain't Spartacus, Duneatincake, 1 Sunkissed Drive, Grand Cayman. I'm sure the Post Office will be able to redirect it to my hovel in a small market town in rainy England.
And to think, I thought Twitter was over-valued. They actually make money! Well OK, they lose money, but they have revenue coming in, so they can at least dream about it. Facebook make a profit. I'm going to buy some shares in it now, they must be modern geniuses!
Bugger me! Everyone agrees. Facebook shares are now apparently worth $52.84.
I'm forever blowin' bubbles. Pretty bubbles in the air.
The key is in "inspire their future", i.e. their future self will look back in horror at how much time they wasted with liking cupcake photos and from the induced psychological recoil will go on to create world peace and happiness.
Or (just possibly) it's drivel designed to cover the VCs pumping up the valuation now before cashing out post-IPO, Facebook-style. After all the philosopher fleeing the bear only has to outrun his friend, and you the early investor here only have to find a bigger fool before the music stops.