TechCrunch’s Alexia Tsotsis wrote today about some rumoured interest in investing in Pinterest at a billion dollar valuation. That would be a crazy amount of money. But probably not for the reason you think.
Pinterest’s growth over the last year has been astonishing by any measure. They’re one of the fastest-growing independent websites of all time. And growth of that sort attracts attention from venture capitalists.
It’s all quite simple. With a growth curve like Pinterest’s, when you project into the future, their current 10 million+ users quickly ramp up to hundreds of millions. That’s pretty staggering. And even though they don’t currently have much in the way of a revenue model, with that many people using your site, there’s got to be a way to make money from them.
That’s why investors are excited. They’re looking to where they think Pinterest is going to be.
But I suspect they’re looking in the wrong place.
Pinterest’s growth curve could be about to look very different.
The End of The (Growth) Road
As we’ve outlined in this blog already, recent data suggest that Pinterest’s impressive growth may be well and truly over.
New data we’ve seen today from AppData look at the number of people logging into Pinterest via their Facebook credentials.
Back in February, that data was showing a consistent, healthy rise to 10 million and beyond.
Now, the graph looks very different. According to AppData, Pinterest’s monthly active users peaked at around 12.4 million back in March and has been falling steadily to around 11.1 million now.
Unless the data start looking very different soon, investors expecting continued hockey stick growth are going to be sorely disappointed.
Is Pinterest worth $1 billion? Let us know in the comments.
Photo by kodomut