There are many tech companies from the silicon valley who have filed for IPO in last year, but majority of them have done it confidentially. Now Pinterest which is a visual engine is also going to join that list because according to recent reports the company has filed for Initial public offering privately. Reports show that the company has decided to go public and that’s why it has submitted required documents to the Securities and Exchange Commission. Ben Silbermann founded Pinterest in 2008, and so far this visual search engine has got a good response from netizens all around the world. There are have been many rumors about Pinterest’s filing for IPO because recently it hired Goldman Sachs and JP Morgan Chase as underwriters during IPO process. Underwriters are those people who take the responsibility of selling company’s shares to the general public.
Pinterest has more than 250 million active users who generate a considerable amount of revenue to the company. Accordingly, Pinterest received more than 150 million dollars of financing in 2017 and investors of it valued the company at $12.3 billion. There are some investment firms like Bessemer Venture Partners, Andreessen Horowitz, FirstMark Capital, Fidelity and SV Angel who have invested into Pinterest a good amount of money. If we compare Pinterest monthly active users, then it shows a bright sign for the company, and that could be a significant reason why executives have thought to go public.
Social media is changing at a rapid rate and to survive in such a fierce competition company will have to keep improving its platform. Currently, Facebook owns majority of social media industry, and Google is a crucial stakeholder of Pinterest so it will be interesting to see how Pinterest will change its platform to keep its users engaged.