Venture Capital

Will ad tech slowdown hurt advertisers?

Spend on digital advertising continues to grow by leaps and bounds as companies allocate more and more of their ad budgets to digital.

But that doesn’t mean that everything is going great in the online ad market.

As investors pour $200m more into Pinterest, is a business model in the offing?

The internet economy may be one of the brightest spots in today’s global economy, but the hits taken by shares of publicly-traded prominent internet brands like Facebook, Zynga and Groupon has definitely had an impact on venture backed companies, many of which have had and will have a more difficult time convincing investors that they’re worth as much as they might have been able to convince them they’re worth a couple of years ago.

You wouldn’t know that, however, looking at Pinterest’s latest funding round, which made headlines last week. The image-based social network is on the verge of becoming the second most popular social media site in the United States, and despite the fact that it hasn’t figured out how to make money, investors poured $200m into the young company at a $2.5bn valuation.