Reddit was founded in 2005 and it is a San Francisco based company. The company allows people to put posts or links of articles on its site. Reddit announced that through the funding the business is raising and grow more. Also, brands and marketers are attracted to the website’s powerful and active community members through funding. This is the sixteenth year of operation, and the company raised a total of $800 million since 2011, including a $300 million Series D funding by Tencent in February 2019. On 8th February 2021, for renewing its role at the center of a winning Super Bowl ad, and recent stock market turmoil, Reddit raised a funding of $250 million in Series-E funding round. The recent funding round is done by Vy Capital, and previous investors also participated in this funding including Andreessen Horowitz, Sequoia Capital, and Tencent Holdings, which doubled Reddit’s valuation.
Further, Reddit doubled its valuation to $6 billion with new funding led by firm Vy capital. In February 2019, the valuation of the company was $3 billion after the funding round. Reddit plans to invest its new funding in consumer products, adding video tools, and advertising business. For expansion into the international market, the company is considered to invest more in it.
Reddit is inclining recently after the shares of the video game retailer GameStop increased as users of the WallStreetBets forum, a Reddit’s part. This is known as a subreddit, which encourages another one to buy the stock, probably to entrap hedge funds that had bet the stock would fall. This has grown GameStop’s stock rapidly. After a distraction of media attention, the WallStreetBets forum expanded to more than 7 million members. Multiple book and film option rights have been shopped over history, with the prospect of fame and money involving the forum’s moderators in bitter disputes. Apart from it, Reddit plans to invest funding to expand its community of more than 50 million daily active users. That includes more influencers and content creators. In December, Reddit bought a competitor of TikTok named Dubsmash, a short-form video platform.
