SAN FRANCISCO – Fresh from a Win Super Bowl ad and a role in The center of a recent hype on the stock marketReddit announced Monday that it had raised $ 250 million in new funding. The social news start-up is valued at $ 6 billion to accelerate user growth and double its workforce.
The investment is a shot in the arm of Reddit, which has been focusing on building digital communities around topic-based message boards since 2003. The latest funding, led by Vy Capital with the participation of previous investors such as Andreessen Horowitz, Sequoia Capital, and Tencent Holdings, doubles Reddit’s rating from its last funding in 2019.
San Francisco-based Reddit said the funding is building on the success of its burgeoning advertising business as brands and marketers are drawn to the site’s powerful and active community members.
“We have come a long way in the past few years to focus more on the needs of the hundreds of thousands of communities that make up Reddit,” the company said in one blog entry. “We are committed to Reddit because we believe in the power of communities to create a sense of belonging and connection that is as real as what we do offline.”
Reddit has been very visible for the past few days. Video game retailer GameStop’s shares rose sharply last month as users of Reddit’s WalldreetBets forum, known as the “Subreddit,” encouraged each other to buy the stock, in part to include hedge funds that had bet on it. that the stock would fall.
That put GameStop’s stock on an extraordinary and volatile ride. After a flood of media attention, the WallStreetBets forum rose to more than seven million members. Several book and movie option rights were bought through the saga with the prospect of fame and money involve the moderators of the forum in bitter disputes.
Reddit was also widely used commended for a five-second commercial That aired during Sunday’s Super Bowl, which became one of the most talked about ads on a day that was overflowing with talked about ads. Reddit’s ad, which had viewers pausing their television screens to read it, announced, “Wow, that actually worked.” Viewers searched for screenshots of one of the shortest Super Bowl ads ever posted on social media.
Reddit has been controversial over the years. The company has long been criticized for its Laissez Faire approach to content moderationwhat allowed racist, sexist, and troll-rich communities to thrive. At one point, Reddit refused to remove sub-forums devoted to racist commentary, citing the need for free and unqualified speech.
In recent years, the company has changed its attitude towards content moderation. Since Steve Huffman, a Reddit co-founder, returned as CEO in 2015, the start-up has been redesigning Fine-tune the content guidelines. Reddit has locked communities by Nazis and other right-wing extremist contingents. It is in June The_Donald prohibited, a sub-forum dedicated to supporters of President Donald J. Trump that the company said has repeatedly broken the rules of harassment and other conduct.
Reddit said it plans to use the new capital injection to grow its community of more than 50 million daily active users. This includes courting more influencers and content creators, a step they should take when purchasing the Short-form video platform Dubsmash, a rival of TikTok, in December. Reddit, which has more than 700 employees, also said it would double that number this year.