Reddit, the self-proclaimed ‘front page of the internet’ recently closed at $300 million round of Series D funding at a $3 billion valuation.
The Details of the Deal
The $3 billion post-money valuation comes just after Reddit closed its latest $300 million Series D. As reported, $150 million of the round was raised by Chinese tech giant, Tencent, while the rest came from previous investors including Andreessen Horowitz, Sequoia, and Fidelity. The new round of funding will reportedly be used to transform the platform into more of an advertising vehicle. To date, Reddit has raised over $550 million after four rounds of funding.
An Agreement with Tencent
The new investment doesn’t come without controversy however. Reddit users fear the new investment by the Chinese tech company may lead to more censorship. These fears have only exacerbated in light of the fact Reddit itself is currently banned in China due to censorship concerns. As the company behind WeChat and League of Legends, as well as being the largest shareholder in Snapchat’s parent company, and a large stakeholder in the company behind the smash hit, Fortnite, Tencent is no stranger to building tech powerhouses. But, with the Trump administration’s anticipated plans to limit Chinese tech investment in American corporations, the future for how the marriage will play out is anyone’s guess.
Moving into New Territory
Founded in 2006, Reddit currently boasts over 330 million monthly active users, and more than 14 billion monthly screen-views. It was only in the past few years however that the private company began to push to monetize the site. The new effort in transforming the company into an advertising driven-platform now will put Reddit on a collision course with Google and Facebook for advertising dollars. Nonetheless, with a user-base as dedicated as Reddit’s, it seems there will be no shortage of opportunities for the company to flourish.