Reddit Is Set to Raise a Staggering Amount of Money
Reddit, which describes itself as the “front page of the internet,” is set for a bumper round of fundraising that could see it valued beyond $3 billion. The move, aimed at keeping operations running at the high-traffic site, could see the company valued higher than other internet giants like Niantic and Discord.
The TechCrunch report on Tuesday claimed that Chinese tech firm Tencent will lead a Series D round of funding with a pre-money valuation of $2.7 billion. The round is expected to raise between $150 million and $300 million and comes nearly two years after the firm raised $200 million in a July 2017 round on a valuation of $1.8 billion. The money will help fund a website that attracts a staggering 330 million monthly active users. The firm was previously a subsidiary of Conde Nast, but it spun out in 2012 and now operates as an independent entity with the publisher as the largest shareholder.
Reddit’s previous fundraising has attracted a top slate of investors. An October 2014 round to raise $50 million saw the company valued at $500 million. Participants included expected names like Marc Andreessen and Peter Thiel, but also less expected figures like Jared Leto and Snoop Dogg. The rapper, who posts under the name “Here_Comes_the_King,” famously claimed in an “ask me anything” session in 2012 that he smoked 81 blunts per day.
The website has seen itself at the heart of a number of internet culture stories. Its users led a campaign to save net neutrality, after the United States’ FCC announced plans to reverse rules that ensured internet providers offered fair access to websites. The site has received criticism for its handing of hate speech, however, with CEO Steve Huffman stating that the company was not interested in being the “thought police.”
While finer details about the fundraising are unclear, the finances are expected to fund costs of maintaining a staff of around 350 people while it ramps up its advertising revenue model.
It could be enough to beat one of the biggest chat apps on the market in terms of valuation.