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Reddit’s Valuation Doubles to $6 Billion After Funding Round

Published by

December 5, 2024
(GMT+2)

Reddit Inc. doubled its valuation to $6 billion in a fresh round of funding that comes as the social-media company has added users through the coronavirus pandemic and more recently has drawn attention for its role in the recent Wall Street trading madness.Reddit on Monday stated that it raised $250 million in a late-stage funding round led by venture-capital firm Vy Capital. It was previously valued at $3 billion after its final funding round in February 2019, according to PitchBook, a provider of private-market data. Current investors in Reddit also add venture-capital firm Andreessen Horowitz and internet conglomerate Tencent Holdings Ltd. The funding for Reddit comes just weeks after upstart audio-chat social network Clubhouse raised new capital. Clubhouse was valued at $1 billion last month after securing $100 minion in a funding round led by Andreesen.San-Francisco-based Reddit, started in 2005, is recognized for its message boards on a multitude of topics including “ask me anything” digital town halls with celebrities, politicians and subject-matter experts. The company, which isn’t profitable, was sold to Condé Nast in 2006, and the magazine publisher’s parent company, Advance Publications Inc., spun Reddit off in 2011and remains a shareholder. The company has raised roughly $800 million since 2011.

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