Reddit Valuation Hits $6 Billion With New Funding

Story- and conversation-hosting website Reddit‘s valuation has surged to $6 billion with a $250 million investment the company announced on Monday (Feb. 8). “We decided that now was the right opportunity to make strategic investments in Reddit, including video, advertising, consumer products and expanding into international markets,” the San Francisco-based company wrote in a blog post.

A Reddit spokeswoman confirmed to PYMNTS that the new investment valued Reddit at $6 billion, pre-money, and that the latest round was led by Vy Capital.

According to Axios, the new valuation is a doubling of Reddit’s February valuation of $3 billion. In June 2015, Reddit raised $100,000 in seed capital.

Reddit says in its marketing materials that more than 50 million people visit the website daily. The company also recently acquired Dubmash, a suite of tools for creating videos. The companies said at the time that Dubmash would remain a freestanding operation whose products would be integrated into Reddit. Neither company disclosed terms.

“We have come a long way in recent years to focus more on the needs of the hundreds of thousands of communities that make up Reddit and on creating feature-rich, safe, engaging spaces for meaningful conversations for our 50+ million daily users. We have also continued to scale our advertising business, which is now poised to deliver performance and engagement in addition to brand awareness,” Reddit’s blog post states.

The funding announcement follows a wild few weeks for Reddit, during which users of the platform posted stories credited with driving big moves of some high-profile Wall Street stocks, including GameStop. Describing the unusual trading activity that sent GameStop shares temporarily soaring, PYMNTS stated on Feb. 3: “Reddit has proved to be an ample megaphone for such activity, where users cheer or pan the targets of the day.”

After surprising trading following Reddit posts about a stock called Dogecoin, a PYMNTS article on Jan. 29 described the surge of activity from new investors cheering each other on via Reddit as “the Reddit vs. Wall Street saga.”