Reddit’s Valuation Has Doubled After Raising $250M in New Funding

Reddit, the popular discussion website that helped send shares of Gamestop skyrocketing, has just doubled its valuation to $6 billion after a new $250 million round of funding.

The social media company’s Chief Executive Officer, Steve Huffman, has said to Wall Street Journal (WSJ) that it is a good market to raise funds.

“Valuations are very high right now. It never hurts to raise money when there’s an opportunity to do so and Reddit had a strong year,” Huffman said to the Journal.

In a recent blog post, San Francisco-based Reddit had reported that advertising revenue increased 90% in the last quarter from a year earlier.

In the post the company wrote, “We have raised more than $250 million in Series E funding from existing and new investors. We decided that now was the right opportunity to make strategic investments in Reddit including video, advertising, consumer products, and expanding into international markets.”

“We are also readying to double the number of Reddit employees this year; it’s surprising not only for the pace of growth but also that such a relatively lean team has been behind one of the most visited websites in the world. We are confident in our mission to provide community and belonging to everyone and are well-positioned for the growth we have planned,” Reddit added.

The latest funding was led by Vy Capital with participation from previous investors like Andreessen Horowitz, Sequoia Capital and Tencent Holding
Shares of the video-game retailer GameStop exploded in recent weeks because of
Reddit’s WallStreetBets forum, which is known as a “subreddit.” Members had motivated each other to buy the stock on a mission to stick it to the hedge funds that had shorted it.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.