The social media network Reddit said on Thursday that its funds will reach up to $700 million after its current financing round, making the company’s valuation go up to $10 billion. The funding round is led by Fidelity Management. Out of the $700 million, $410 million worth of funds has already been collected, according to the company.
Reddit in a recent weblog stated that “We’re optimistic and inspired that not solely are we resourced and capitalised to proceed on our progress path, but in addition that our traders help our imaginative and prescient and wish to deepen their stakes in our future.”
The traders are now spread across discussion boards despite the initial attraction towards Reddit’s WallStreetBets forum. They have brought in a change in the method of operation of Wall Street analysts which led to major losses in some funds and adding profits in the shares of some companies like GameStop and AMC. The value of Reddit has already been doubled and reached $6 billion during this round.
Reddit is based in San Francisco and was founded by Steve Huffman, Alexis Ohanian, and the late Aaron Swartz in 2005. Reddit has been in the field for many years and has been attracting a number of people but has failed to develop its business to a higher level as other social media giants. The $10 billion is also not so much in front of Twitter’s $52 billion and Facebook’s $1 trillion.
Reddit has a user base of 52 million daily active users and over 100,000 communities. It also improved its advertising revenue by reaching $100 million for the first time in the second quarter which is a year-on-year rise of 192 percent. Reddit has employed its first chief monetary officer, Drew Vollero in March, who helped Snapchat go public in 2017.
The funding round sees participation from investors like venture capital firm Andreessen Horowitz, funds such as Sequoia Capital, Tencent Holdings, and rap superstar Snoop Dogg.