Reddit Inc. doubled its valuation to $ 6 billion in a new round of funding coming as the social media company added users through the Covid-19 pandemic and recently received more attention for its role in the recent Wall Street trade chase.
Reddit said on Monday that it had raised $ 250 million in a late-funding round led by venture capital firm Vy Capital. According to PitchBook, a private market data provider, it was previously valued at $ 3 billion after the last round of financing in February 2019. Current investors in Reddit also include venture capital firm Andreessen Horowitz and internet conglomerate Tencent Holdings Ltd.
“This is a great market to raise money,” Reddit CEO Steve Huffman said in an interview. ‘The valuations are currently very high. It never hurts to raise money when there is an opportunity for it and Reddit has had a strong year. “Advertising revenue for the company, for example, increased by 90% in the December quarter from a year earlier,” he said.
The funding for Reddit comes just weeks after the emerging audio-social network Clubhouse raised fresh capital. Clubhouse was valued at $ 1 billion last month after securing $ 100 million in a funding round led by Andreessen, according to PitchBook.
The San Francisco-based Reddit, founded in 2005, is known for its message boards on a multitude of topics, as well as its digital papers “ask me anything” with celebrities, politicians and professionals. The company, which is not profitable, was sold to Condé Nast in 2006, and the parent of the magazine publisher, Advance Publications Inc., isolated Reddit in 2011 and remains a shareholder. The company has raised about $ 800 million since 2011.