Reddit Inc. doubled its valuation to $6 billion in a brand new spherical of funding that comes because the social-media firm has added customers by the Covid-19 pandemic and extra just lately has gained consideration for its function within the current Wall Avenue buying and selling frenzy.
Reddit on Monday stated it raised $250 million in a late-stage funding spherical led by venture-capital agency Vy Capital. Beforehand it was valued at $three billion after its final funding spherical in February 2019, based on PitchBook, a supplier of private-market knowledge. Present traders in Reddit additionally embrace venture-capital agency Andreessen Horowitz and web conglomerate Tencent Holdings Ltd.
“It’s a great market to fundraise,” Reddit Chief Government Steve Huffman stated in an interview. “Valuations are very excessive proper now. It by no means hurts to lift cash when there’s a chance to take action and Reddit had a robust 12 months.” For instance, promoting income for the corporate shot up 90% within the December-ended quarter from a 12 months earlier, he stated.
The funding for Reddit comes simply weeks after upstart audio-chat social community Clubhouse raised recent capital. Clubhouse was valued at $1 billion final month after securing $100 million in a funding spherical led by Andreessen, based on PitchBook.
San Francisco-based Reddit, based in 2005, is thought for its message boards on a mess of subjects, in addition to its “ask me something” digital city halls with celebrities, politicians and subject-matter specialists. The corporate, which isn’t worthwhile, was offered to Condé Nast in 2006, and the journal writer’s father or mother, Advance Publications Inc., spun Reddit off in 2011 and stays a shareholder. The corporate has raised roughly $800 million since 2011.