The unicorn of discord: Reddit raises its valuation to $6B in a new round of funding

Yesterday, the management of the Reddit portal announced that it had raised $250M in Series E funding from existing and new investors. According to them, now is “the right time” to fund the development of their video platform, advertising strategy, and other products, as well as distribution in international markets. The text reveals the daily number of active users (50+ million), plans to double the staff, and a statement about the advertising revenue growth of 90% in the last quarter.

During its 16 years of existence, c its 16 years of existence. The new round not only brought them closer to a billion but also doubled the total estimate to $6B. Such successful and rapid growth of the platform has been influenced not only by the coronavirus and lockdown but also, of course, by events around the WallStreetBets — the community of amateur investors. Almost all the media wrote about the war on hedge funds with GameStop stock: it was a complex event that not only bankrupted some and made others rich but also showed the power of Internet communities.

An interesting fact is that one of the investors was the famous Andreessen Horowitz Fund, which recently acted in the same role with Clubhouse and previously financed BuzzFeed. One may notice quite a clear trend and focus on platforms that can form a community.

Today, business is turning towards the development of a community around the brand, realizing that this is the most relevant tool in today’s realities. Platforms like Reddit originally existed as a source of self-forming ideacentric communities that (as in the case of GME stocks) have shown their ability to influence more conservative institutions with a long history. The ability to influence platforms and have access to these communities provide a strong resource for brands and funds.