Reddit Valued At $10 Billion In New Funding Round
- ByStartupStory | August 13, 2021
Reddit valued at $10 billion in a new funding round. Reddit will raise up to $700 million in a fundraising round led by Fidelity Management, the social media network said on Thursday, and will cash in on a jump in its influence in the financial world. The company said it had already raised $410 million from Fidelity in its second funding round since the start of the year when small-time traders gathered on its platform in their battle against Wall Street institutions. The traders, initially focused on Reddit’s WallStreetBets forum but now spread across discussion boards, have changed how Wall Street analysts operate, causing major losses for some funds and powering huge gains in the shares of companies including GameStop and AMC. On the back of the trading frenzy, Reddit’s value had already doubled to $6 billion in February from a year ago.
The San Francisco-based company was founded in 2005 by Chief Executive Steve Huffman, entrepreneur Alexis Ohanian and the late Internet activist Aaron Swartz.While Reddit has been a well-known internet name for years, attracting millions of experts and enthusiasts to its niche discussion groups, it has trailed behind other major social media sites in terms of its development as a business. Although a hefty sum, the $10 billion valuation pales in comparison to Twitter Inc’s $52 billion or the $1 trillion value of Facebook Inc, both founded around the same time as Reddit.
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