San Francisco – Fresh of a Win a super bowl ad And a role on The center of the recent stock market craze, Reddit announced on Monday that it had raised $ 250 million in new funding, valuing the social news start-up at $ 6 billion as it aims to increase user growth and double its work force.
The investment is a shot in the arm for Reddit, which since 2003 has focused on building digital communities around topic-based message boards. The latest funding, led by Vi Capital, with the participation of past investors such as Andreessen Horowitz, Sequoia Capital and Tencent Holdings, doubles Reditt’s valuation from its previous financing in 2019.
Reddit, which is based in San Francisco, said the money built on the success of its growing advertising business, as brands and markets are attracted to the site’s powerful and active community members.
The company said that we have come a long way in recent years to focus more on the needs of the thousands of communities that make up Reddit. blog post. “We have dedicated ourselves to Reddit because we believe in the power of communities that provide a sense of being real and relatable as we are offline.”
Reddit has appeared a lot in recent times. Last month, shares of video-game retailer GameStop rose as users of Reddit’s WallStreetBets forum, known as “Saberdit”, preferred each other to buy stock, partly to cheat the stock To trap funds.
That sent GameStop’s stock on an extraordinary and unstable ride. After gaining media attention, the WallStreetBets Forum ballooned over seven million members. Multiple book and film choice rights have been left to the saga, with the possibility of fame and money Hug the forum moderators In bitter disputes.
Reddit was also widely Praised for a five-second commercial It aired during the Super Bowl on Sunday, becoming one of the most talked-about commercials in a day, with a multitude of talking commercials. The location of Reddit, which required viewers to pause their television screens to see it, announced, “Wow, it’s really working.” Viewers scramble to grab a screenshot of one of the shortest Super Bowl ads to post on social media.
Reddit has had its share in controversies for years. The company has been criticized for a long time Laissez faire approach to content moderation, Which allowed racist, sexist and troll-ridden communities to flourish. At one point, Reddit refused to remove subfields devoted to racist commentary, requiring free and unscripted speech.
In recent years, the company has changed its tune on content moderation. Returning as CEO in 2015, Reddit co-founder Steve Huffman overhauled the start-up and Look at your content policies well. Reddit has done Nazis forbidden communities And other far-flung contestants. In June, it The_Donald banned, President Donald J. A subform dedicated to Trump’s supporters, which the company said repeatedly broke its rules against harassment and other behavior.
Reddit said it planned to use the new injection of capital to expand its community of more than 50 million daily active users. This includes more influencers and content creators, when bought it did a trick Short-form video platform Dubsmash, A rival for TikTok in December. Reddit, which has more than 700 employees, also said that this number will double this year.