Reddit Inc. doubled its valuation to $ 6 billion in a new round of financing that emerges as the social media company added users through the Covid-19 pandemic and, more recently, gained attention for its role in the recent frenzy Wall Street commercial.
Reddit announced on Monday that it raised $ 250 million in an end-stage financing round led by venture capital firm Vy Capital. It was previously valued at $ 3 billion after its last round of financing in February 2019, according to PitchBook, a provider of private market data. Current investors on Reddit also include venture capital firm Andreessen Horowitz and internet conglomerate Tencent Holdings Ltd.
“It’s a good market for raising funds,” said Reddit chief executive Steve Huffman in an interview. “The ratings are very high now. It never hurts to raise money when there is an opportunity to do so and Reddit has had a strong year. ”For example, the company’s advertising revenue increased 90% in the quarter ended in December compared to the previous year, he said.
Funding for Reddit comes just a few weeks after the new social network audio chat Clubhouse raised new capital. The Clubhouse was valued at $ 1 billion last month, after securing $ 100 million in a financing round led by Andreessen, according to PitchBook.
San Francisco-based Reddit, founded in 2005, is known for its message boards on a variety of topics, as well as its “ask me anything” digital prefectures with celebrities, politicians and subject matter experts. The nonprofit company was sold to Condé Nast in 2006, and the magazine’s publisher, Advance Publications Inc., spun off Reddit in 2011 and remains a shareholder. The company has raised about $ 800 million since 2011.