by Alyson Shontell | BusinessInsider
We’ve been hearing whispers of a new Pinterest round in the works at a $1 billion+ valuation.
We asked around. Here’s what we think is really going on.
Six industry sources told us about a rumored Pinterest round. One source familiar with the company pegged the new valuation between $600-800 million. Two other investors stated the valuation was $1 billion or more. Others simply used adjectives “huge” and “monstrous” to describe the new rumored valuation.
Most sources said Pinterest was currently raising a round, although one mentioned the process might not start for another few months. The source said Pinterest is currently entertaining inbound from venture capitalists but isn’t officially raising a round yet.
The latter source ended up being most accurate.
After reaching out to a dozen VC firms, we couldn’t find a single source directly involved in the so-called round. It looks like investors are trying to create a round for themselves that doesn’t yet exist.
The thought is, if everyone is says there’s a round happening, Pinterest will cave to the demand.
Two sources close to Pinterest says it has no interest in raising a formal round right now, although it may strike one up later this year.
That’s not to say Pinterest doesn’t have term sheets sitting in front of it. We hear VCs are showing up uninvited and shoving them at Pinterest. Some even come with elaborate gifts in hopes of bribing Pinterest.
“It’s like a nerd’s game of chess and they’re all trying to ask out the prom queen,” says a source.
But Pinterest isn’t seeking out the deals nor is it considering acting on them.