Reddit Raised $300 Million and Reached a Valuation of $3 Billion
Reddit, a social service, closed a round of investment in amount of $300 million and reached a valuation of $3 billion, CNBC reports.
Tencent, a Chinese holding, which invested $150 million, and current investors including such investment firms as Sequoia and Fidelity and the musician SnoopDogg, took part in this trade. Reddit raised $200 million at a valuation of $1.8 billion in the previous round, which was in August 2018.
Steve Huffman, a co-founder of Reddit, said that the Company constantly invests in systems that protect the site from insults and other undesirable behavior – both for the convenience of users and for the sake of good conditions for advertisers.
Speaking about Tencent’s interest in the site Huffman explained that the Chinese company invests in a large number of video games – and this category is very popular on Reddit. Reddit itself is blocked in China.
Reddit can grow by simplifying the site to attract newcomers, who can be deterred by the complex interface of the site, Huffman says. He also believes that Reddit has a potential to grow outside the USA, but the Company wants the service to perfectly work in its native country, with familiar language and culture – and we should still work in this direction, the co-founder of the site considers.
Reddit calls itself the “main page of the Internet”. Its audience consists of about 330 million monthly active users, half of whom is presented by people aged 18-24 advertisers are interested in, Huffman says. He does not disclose Reddit’s revenue, but according to sources, the project for the first time overcame the mark of $100 million in 2018.
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