Earlier this yr, Reddit raised $250 million, bringing the 16-year-old web site as much as round $800 million in whole funding. As we speak, it introduced plans for an even more massive windfall, with a Collection F led by Constancy. The corporate confirmed with TechCrunch that it has raised $410 million to this point, with plans to lift as much as $700 million, placing Reddit at a $10 billion valuation.
The corporate says funding will go towards constructing out group and promoting efforts and rising headcount.
“These efforts require us to develop our groups and make sensible bets on the way to make Reddit higher, sooner, simpler to make use of, and extra empowering for communities,” Reddit writes. “We’re additionally evolving as a enterprise, maturing, and constructing the operational constructions that may assist propel us into the long run with transparency, values and integrity.”
As we famous again in February, an awfully unusual couple of years discovered the content material aggregation service enjoying a key function in rollercoaster inventory figures for firms like GameStop and AMC, by means of the r/WallStreetBets subreddit. It additionally kicked off 2021 with a brief Tremendous Bowl spot. All of that helped result in a doubling of the corporate’s valuation to $6 billion.
For now, it appears, the hype practice is continuous. In Q2, Reddit broke $100 million in promoting income for the primary time, marking a 192% year-over-year improve for the quarter. The location now attracts 50 million each day guests and hosts 100,000 energetic subreddits. In March, it introduced Drew Vollero could be becoming a member of as the location’s first-ever CFO, after helping with Snap’s IPO efforts 4 years prior.
In an interview with The New York Times, co-founder Steve Huffman notes that it hadn’t deliberate to lift one other spherical so shortly, however in the end couldn’t flip down what Constancy was providing. He provides that the funding may even issue into Reddit’s eventual IPO plans.
“We’re nonetheless planning on going public, however we don’t have a agency timeline there but,” he informed the paper. “All good firms ought to go public after they can.”