Reddit raises up to $700 million in Series F funding – TechCrunch

Earlier this year, Reddit raised $250 million, bringing the 16-year-old site to about $800 million in total funding. Today it announced plans for an even bigger windfall, with a Series F led by Fidelity. The company confirmed with TechCrunch that it has raised $410 million so far, with plans to raise up to $700 million, putting Reddit at a valuation of $10 billion.

The company says the funding will go toward building community and advertising efforts and increasing its workforce.

These efforts require us to grow our teams and make smart bets to make Reddit better, faster, easier to use and more powerful for communities, Reddit writes. We are also evolving as a company, maturing and building the operational structures that will drive us forward with transparency, values ​​and integrity.

As we noted in February, an extremely odd couple of years discovered that the content aggregation service played a key role in rollercoaster stock numbers for companies like GameStop and AMC, through the r/WallStreetBets subreddit. It also kicked off 2021 with a short Super Bowl spot. All of that led to a doubling of the company’s valuation to $6 billion.

For now, the hype train seems to continue. In the second quarter, Reddit broke $100 million in ad revenue for the first time, up 192% year-over-year for the quarter. The site now attracts 50 million daily visitors and hosts 100,000 active subreddits. In March, it announced that Drew Vollero would join as the sites’ first-ever CFO, after helping with Snap’s IPO efforts four years earlier.

in a interview with The New York Times, co-founder Steve Huffman notes that it had no intention of raising another round so soon, but in the end couldn’t refuse what Fidelity had to offer. He adds that the funding will also factor into Reddit’s eventual IPO plans.

We still plan to go public, but we don’t have a set timeline there yet, he told the paper. All good companies should go public when they can.