Sunday, May 18, 2014

Pinterest Raises New Round of USD 200 Million ?

Perhaps Pinterest is like Chatroulette and will collapse soon.
Lots of persons want to use it, but nobody wants to pay for it.
There is a large dotcom bubble fueled by venture investment funds, investors who are dragging other investors to continue investing until they can sell shares of the company and recover leveraged money, but the last holder of shares is going to lose.
Many technology companies, without having a concrete business model (supposedly will generate revenue from advertising and premium subscription accounts) receive millions of dollars in funding to offer something free, acquiring fastly a large mass of captive users as if they had made them addicts, and then, the exit strategy (for investors) is to get someone to buy the company at a staggering figure, as did Blogger, Fotolog, MySpace, YouTube, Skype, Bebo and others. They are like continually inflating balloons and they need to find a buyer before they explode. If they can not find a private buyer for the entire company, the investors had the strategy of going public, to start trading its shares on the New York Stock Exchange, they turn those pieces of paper (shares) in real money, they get thousands of buyers purchasing lower small parts (shares).

Please read
Pinterest CEO Lays Out Growth Plan, Sees Revenue in 2014
tech space that is out of control: WhatsApp
Social media faces doubts after latest round of results ?

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