With $ 250 million in funding, Reddit is now worth $ 6 billion
Reddit raised another $ 250 million in its most recent round of fundraising, bringing its value to $ 6 billion. Reddit plans to double its staff this year.
Reddit has recently launched a new round of fundraising programs and has managed to raise $ 250 million new capital. Following this incident, Reddit announced that it would double its staff this year to about 1,400.
According to the Warg News Agency, Reddit currently has about 700 employees, more than 600 of whom live in the United States, According to CNBC, Reddit has offices in New York, San Francisco and Chicago.
The news of the $ 250 million investment has been circulating in the media while one of the social network's subsets, r / WallStreetBets, has been in the spotlight in recent weeks. This subordination had a significant effect on the sudden rise in value of GameStop, AMC and some other companies.
Reddit users gathered at the subordinate and collectively bought shares of certain companies to experience explosive growth in the value of their shares. Reddit users did this to compete with large Wall Street investors. Last week, the US Securities and Exchange Commission reportedly launched a new investigation to determine whether misinformation posted on social media violated the securities rules.
In an interview with The Wall Street Journal, Steve Hoffman, founder and CEO of Reddit, stated that his company does not intend to fundamentally change its strategies due to a $ 250 million budget. Reddit has decided to use the new budget to invest in video, advertising, customer products and expanding its operations internationally.
Last Saturday, Reddit announced that it had spent all of its marketing budget on a five-second ad in the Super Bowl to release a text in honor of its role in the recent GameStop controversy. The five-second ad was widely reported on social media. Last year, Reddit announced the acquisition of Dubsmash. Dubsmash is a social platform based on short videos, and Reddit apparently wants to incorporate Dubsmash video creation tools into its platform.
According to the Wall Street Journal, Reddit's market value doubled to $ 6 billion thanks to a $ 250 million investment. By the end of 2020, Reddit's direct advertising revenue had increased by almost 90% compared to the same period in 2019.
As of December 2020, Reddit had 52 million daily active users. By comparison, Facebook has about 1.85 billion users and SnapChat's parent company, Snap, has 256 million daily users and Twitter 187 million daily users.