[Mise à jour 24/02/21] Reddit has just raised more than $ 116 million in a round-up funding round, according to documents filed with the Securities and Exchange Commission. This brings this Series E funding to a total of $ 367 million. The document also indicates that the ambition of the discussion and link sharing site is to raise up to $ 500 million during this round table. Reddit confirmed the operation by specifying that the participants are historical investors but also new partners. The platform is targeting a valuation of $ 6 billion.
[Article original] Reddit announced Tuesday, February 9, that it had completed a $ 250 million Series E funding round. This financing, which brings the funds raised by the Californian company to $ 800 million, brings new investors into the capital alongside its historical supporters, whose names are not indicated.
In a blog post, the company explains that it wants to double its workforce in 2021 without specifying its roadmap. Reddit raised $ 300 million in a fundraising campaign led by Chinese Tencent in February 2019.
An acquisition in December 2020 to compete with TikTok
This platform mixing content sharing and discussion forum, created in 2005, is trying to come back to the fore after some setbacks. The company is seeking a smoother image, especially with advertisers, after being widely cited during the events on Capitol Hill, in which pro-Trump activists entered the official building housing the US Congress. The San Francisco-based company, accused of having participated in the dissemination of hateful content, announced that it had banned the “r / donaldtrump” subreddit following the violence, which caused the death of five people.
In December, Reddit also announced the acquisition of Dubsmash, a New York start-up created in 2014 and specializing in the creation and sharing of very short videos. Dubsmash has developed an application allowing a user to make video playback via face synchronization technology. Specializing in content sharing and community discussions, Reddit can thus hope to complete its video features and compete with market giants like Snapchat (and its Spotlight product, launched last November), TikTok and Instagram (Facebook) and its Reels.
Reddit also ran an ad on Sunday during the Super Bowl, which was held on February 7 in Tampa. This single, static image, like a standard network publication, cost him “his entire marketing budget for five seconds of airtime“, explained the Californian start-up.
What just happened? pic.twitter.com/DypRp6DeQt
– Reddit (@reddit) February 8, 2021