The social media giant Reddit doubles its valuation to $6 billion after raising another $250 million in a Series E fundraising round as announced by the company on Monday night. The news occurs just weeks following the headlines for promoting hedge fund disruptors’ discussions in its subreddit r/WallStreetBets. On Monday, Reddit raised $250 million in a late-stage funding round led by venture-capital firm Vy Capital.
Previously the social media giant was valued at $3 billion after its funding round in February 2019, according to PitchBook, a provider of private-market data. Reddit’s earlier investors constitute venture-capital firm Andreessen Horowitz and internet conglomerate Tencent Holdings Limited. It elucidates that the funding results from its burgeoning advertising industry’s success. The brands and marketers are interested in the site’s powerful and active community members.
Reddit plans to expand its daily active users
Reddit says it intends to utilize the new capital injection to expand its community to more than 50 million daily active users. It involves attracting more influencers and content creators. This was a move it did when it acquired the short-form video platform Dubsmash, a rival to TikTok, in December. Reddit, which has above 700 workers, also stated it would double that number this year.
However, coordinated buying attacks are doubling and spreading throughout the crypto sector, influenced by a Reddit forum called WallStreetBets. Over the last few weeks, traders are encouraged and inspired by inexperienced-day traders based on a Reddit forum called WallStreetBets (WSB). It started a coordinated buying attack on the video game retailer GameStop. Thus, causing a short squeeze and striking heavy losses for hedge funds such as Melvin Capital.
This influenced the U.S. SEC to conduct investigations and Congressional hearings. This craze later expanded to Dogecoin and XRP, both of which witnessed extensive price surge. However, while Reddit is just the platform used to promote day trader discussions, the recent wave of attention seems to have helped Reddit in its late-stage funding round. It has now noticed the platform reach a $6 billion valuation.
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