Reddit Inc. doubled. valued at $ 6 billion in a new funding round that comes as the social media company has added users through the Covid-19 pandemic and has recently gained attention for its a recent role in the Wall Street trading frenzy.
Reddit said Monday it raised $ 250 million in a late-stage funding round led by venture capital firm Vy Capital. It was previously valued at $ 3 billion after its last funding round in February 2019, according to PitchBook, a private market data provider. Ordinary investors in Reddit also include venture capital firm Andreessen Horowitz and internet firm Tencent Holdings Ltd.
“It’s a great market for fundraising,” Reddit CEO Steve Huffman said in an interview. “Valuations are very high at the moment. It doesn’t hurt to raise money when the opportunity arises and Reddit had a strong year. ” For example, advertising revenue for the company burned 90% in the fourth quarter of December from a year earlier, he said.
The funding for Reddit comes just weeks after social network audio chat uplurt Clubhouse built new capital. Clubhouse was valued at $ 1 billion last month after receiving $ 100 million in a funding round led by Andreessen, according to PitchBook.
San Francisco-based Reddit, founded in 2005, is famous for its message boards on a number of topics, as well as the digital “ask me anything” town halls with celebrities, politicians and subject matter experts. The not-for-profit company was sold to Condé Nast in 2006, and the parent of the magazine’s publisher, Advance Publications Inc., withdrew Reddit in 2011 and remains a shareholder. The company has raised about $ 800 million since 2011.