Reddit raises $ 150 million to $ 300 million to keep the front page of the internet running, telling multiple sources to TechCrunch. The upcoming Series D round is said to be led by Chinese tech giant Tencent at a pre-money rating of $ 2.7 billion. Depending on how much cash Reddit raises with investors in Silicon Valley and beyond, the valuation after the money can reach an epic $ 3 billion.
As more people search online for esoteric community and off-kilter entertainment, Reddit continues to grow its links for sharing links. 330 million monthly active users now frequently appear on its 150,000 Subreddits. This justifies the increase in valuation, which previously reached $ 1.8 billion when it increased $ 200 million in July 2017. From then on, Reddit's majority stake was still held by publisher Conde Nast, who bought it in 2006 for just a year. after the site was launched. Reddit had previously raised $ 250 million, so the new round will push it to $ 400 million to $ 550 million in total funding.
It should have been clear that Reddit was hunting after a month of growth to the press and beating his own drum. In December, Reddit announced that it had reached 1.4 billion video views per month, a staggering 40 percent from just two months earlier after the first launch of a native video player in August 2017. And it made great efforts to get ads for cost per click to sell alongside promoted messages, cost per impression and video ads. An increase of 22 percent in engagement and an increase of 30 percent in the total picture in 2018 generated more than $ 100 million in revenues last year, CNBC reports.
The exact details of the Series D may fluctuate before it is formally announced, and Reddit and Tencent refused to comment. But supporting and moderating all that content is not cheap. The company had 350 employees slightly less than a year ago and has its headquarters in expensive San Francisco – although in one of the cheaper but inconvenient neighborhoods. Until the newer advertising products from Reddit enter the market, it is still dependent on risk capital.
Tencent's money gives Reddit the time to make his move. It is said that it kicks the first $ 150 million of the round. The Chinese conglomerate owns the all-in-one WeChat messaging app and is the largest gaming company in the world thanks to the ownership of League Of Legends and rings in Clash Of Clans creator Supercell and Fortnite developer Epic. But China's crackdown on gambling addiction was heavy for Tencent's appreciation, and the Toutiao newsreader app from the Chinese competitor Bytedance has grown enormously. Both facts make investing in the American newsboard Reddit a smart diversification, even if Reddit is not accessible in China.
Reddit could try to fill in the round with up to $ 150 million extra money from previous investors such as Sequoia, Andreessen Horowitz, Y Combinator or YC & # 39; s president Sam Altman. They could potentially see in one of the web's most unique and internet-native content community. Reddit is where the real world is wept and laughed by a technically savvy target group that often produces memes that switch to regular culture. And with all those amateur curators who toil for internet points, casual users flock together for a sharper look at what tomorrow will be the center of attention.
Reddit has recently prevented a large part of the backlash on Facebook, Facebook or other social sites from being hit despite the fact that 1000 Russian trolls had to be removed to stimulate political propaganda. But in the past, the anonymous site had many problems with racist, mysoginistic and homophobic content. In 2015 it eventually implemented quarantines and eliminated some of the most offensive Subreddits. But bullying by users contributed to the departure of CEO Ellen Pao, who was replaced by Steve Huffman, the founder of Reddit. Huffman abused that power by secretly editing some user comments on Reddit to frame them in offending the heads of their own Subreddits. He escaped the debacle with a bang on the wrist and apologized and claimed: "I spent my years as a young troll on the internet."
Investors will have to hope that Huffman has the calm to lead Reddit, because it will inevitably get more attention if the valuation goes up. Her policy choice on what constitutes hatred and intimidation, her own corporate culture and her influence on public opinion will all be examined. Reddit has the potential to give voice to great ideas at a time when flashy visuals dominate the internet. And while local journalism is declining, there may be more demand for the breed of detective dog searchers, in a positive or negative sense. But that is all about Reddit, which defines a clear, consistent, empathic policy that helps surf the internet above the sewers.