Pinterest Joins $1B Valuation Club
And how ... its new valuation is actually $1.5B
By Kate Seamons,  Newser Staff
Posted May 17, 2012 8:43 AM CDT
Happy big valuation, Pinterest!   (©ShardsOfBlue)

(Newser) – Facebook may be dominating the headlines this week, but don't forget about the little guys—or the no-longer-quite-so-little ones. Pinterest's valuation has jumped from $200 million to $1.5 billion thanks to a new $100 million round of financing. The Wall Street Journal notes that the news pushes the site into the "exclusive but growing club of Silicon Valley venture-backed companies" to pass the $1 billion mark.

The reality check: Pinterest has no apparent business model, makes limited revenue, and is unprofitable. But investors seem to see a path forward, thanks to big brands' (the Journal cites Whole Foods as an example) use of the site. Right now, they do so for free, but that could change.