SAN FRANCISCO – Beginning with a winning Super Bowl ad and a central role in a frenetic stock market recently, Reddit announced on Monday that it has raised $ 250 million in new funding , valuing the social news startup at $ 6 billion as its goal to drive user growth and double the workforce.
This investment is a boost for Reddit, which since 2003 has focused on building digital communities around themed message boards. The latest funding, led by Vy Capital with the participation of previous investors such as Andreessen Horowitz, Sequoia Capital and Tencent Holdings, has doubled Reddit’s valuation compared to its last funding in 2019. .
Reddit, based in San Francisco, says the funding is built on the success of its thriving advertising business, as brands and marketers are attracted to members. The site’s active and strong community.
“We have come a long way in recent years to focus more on the needs of the hundreds of thousands of communities that make up Reddit,” the company said in a blog post. “We gave our all to Reddit because we believe in the power of communities that feel like the communities we create offline.”
Reddit has been on a roll in recent days. Last month, shares of video game retailer GameStop soared when users of Reddit’s WallStreetBets forum, known as a “subreddit,” encouraged each other to buy shares, in part to entice hedge funds. Opportunities have bet that the stock will fall.
That made shares of GameStop spike and volatile. After a series of media attention, the WallStreetBets forum attracted more than seven million members. Various book and movie options were traded on the saga, with the prospect of fame and money enticing forum moderators into fierce disputes.
Reddit was also widely praised for a 5-second commercial that aired during the Super Bowl on Sunday, becoming one of the most talked about on a crowded day of talked-about ads. Reddit’s location, which asks viewers to pause the TV screen to read it, states, “Wow, this really worked.” Viewers scrambled to take a screenshot of one of the shortest Super Bowl ads ever to post on social media.
Reddit has had its share of controversy for years. The company has long been criticized for its fair approach to content censorship, which allows racist, sexist, and troll-filled communities to thrive. At one point, Reddit declined to remove sub-categories dedicated to racist comments, citing the need for free and uncontrolled speech.
In recent years, the company has changed its view of content censorship. Since Steve Huffman, the co-founder of Reddit, returned as chief executive in 2015, the startup has overhauled and adjusted its content policies. Reddit banned Nazi communities and other far-right forces. In June, it banned The_Donald, a dedicated subforum for the supporters of President Donald J. Trump, which the company said repeatedly broke rules against harassment and other acts.
Reddit said it plans to use the new funds to expand its community of more than 50 million daily active users. That includes attracting more influencers and content creators, a move they made when purchasing short-form video platform Dubsmash, a rival of TikTok, in December. Reddit, with more 700 workers, also said they will double that figure this year.