Reddit has been growing rapidly since the Gamestop rally. (Image: BigTunaOnline / Shutterstock)
$ 410 million in venture capital has raised Reddit, the forum platform that likes to call itself the “home page of the Internet”, without actually raising it. Because the company wasn’t even looking for fresh funds. After all, Reddit had received $ 250 million in funding earlier this year, increasing its valuation to $ 6 billion.
Greetings from the godfather
But now Fidelity Investments approached the company and made “an offer that we could not refuse”. This statement, reminiscent of Mario Puzo’s “The Godfather,” gave Reddit boss and co-founder Steve Huffman of the New York Times in an interview, adding that the financing round could even grow to as much as 700 million dollars.
The funds are used for this purpose
According to Huffman, the new funds will be used to make the website easier for first-time users and to drive international expansion. At the same time, Reddit invests significant resources in the detection and removal of racist, misogynistic and otherwise controversial communities.
The IPO is also still in the room. Huffman said: “We’re still planning an IPO, but we don’t have a set schedule yet. All good companies should go public if they can. “
Reddit is growing fast, but remains manageable in comparison
When it comes to its revenue, Reddit is essentially advertising. In the second quarter of 2021, Reddit claims it generated $ 100 million in advertising revenue. That would correspond to an increase of 192 percent compared to the previous year.
Reddit currently has around 52 million daily users and more than 100,000 active subreddits – as they are called the forums on the platform. At the beginning of this year, the company announced that it wanted to double the number of its employees to around 1,400 by the end of 2021.
