Reddit – the America-based social news aggregation, web content rating, and discussion website – is now looking for more funding and it is aiming for a £1.3 billion or a $1.7 billion valuation, according to reports by Bloomberg site. Previously, the social news website had raised money from investors like Peter Theil, Snoop Dogg, Marc Andreessen and Jared Leto.
Reddit has high milestones when it comes to funding
The social news site is looking to raise over £117 million or $150 million in funding now, according to the reports by Bloomberg news. In 2015, Steve Huffman, the co-founder and chief executive officer of Reddit, came back to the social news website and took over Ellen Pao – the former CEO of Reddit. After the departure of Victoria Taylor, the Reddit community manager, Pao was the target of a big controversy.
In 2014, Reddit last raised money when it brought in over £39 million or $50 million in funding. According to a report by Business Insider, “That round of funding was led by Sam Altman, the head of Silicon Valley startup incubator Y Combinator.”
The social news website is one of the few sites in today’s era that has survived in recent years as well as thrived in the presence of cut throat competition from tech giants and social networking sites like Google, Facebook and Twitter. According to two people familiar with the matter, venture capitalists are now giving a big boost to the link-sharing website with funding that will give the social news website a valuation of over $1.7 billion.
Here’s how Reddit became what it is today
According a report by the website ‘Bloomberg Technology,’ Reddit Inc. was looking for investments totaling over $150 million in recent weeks, said one person. The person, who told about the investments and the valuation, asked to remain anonymous as the terms of the valuation are still a private matter. No funding had been finalized, said a spokeswoman who refused to talk further on the same matter.
In 2005, Alexis Ohanian and Steve Huffman founded Reddit as students at the University of Virgina and together they joined Silicon Valley business incubator Y Combinator. The next year, the co-founders of Reddit Inc. had sold the startup to magazine publisher Conde Nast.
The social news service assembled a number of investors from Hollywood and Silicon Valley in 2014. Peter Theil and Marc Andreessen joined with Snoop Dogg in a $50 million round. The round was led by Sam Altman from Y Combinator. The U.S.-based company – with Huffman as its CEO now – is now experimenting with a premium subscription service and several advertising formats.