Reddit capitalization reached $ 3 billion after attracting $ 300 million investment
The Reddit social network raised $ 300 million during the next investment round . The company's capitalization estimate reached $ 3 billion. Among the company's investors are venture funds Sequoia, Fidelity, Tacit, and rap singer Snoop Dogg - they participated in the new round together with Tencent, which invested in the social network $ 150 million
Before the announcement of the new deal, Reddit conducted a series of investment rounds during which it attracted $ 250 million. During the latter, the company’s valuation was approximately $ 1.8 billion.
In total, Reddit has more than twenty investors, including companies such as Advance Publications, which owns Conde Nast, which previously belonged to the social network.
According to the latest public data from November 2017, the Reddit audience was 330 million active users per month, which generated 14 billion views.
Messages about the deal appeared on the background of not very positive news background for Reddit. Not so long ago, the company was faced with a data breach, during which the hacker was able to penetrate into its systems and access user data - including current email addresses and database backups for 2007. This backup contained old encrypted passwords.
However, serious consequences were avoided - according to Reddit representatives, the attacker managed to get only read-only access.
At the same time, investments from Chinese Tencent also provoked a wave of discussions related to possible restrictions on freedom of speech. Reddit calls itself the "main page of the Internet," and its users value freedom of speech.
At the same time, in China itself, the social network is blocked along with some other major international online services.
Following the previous investment round, Reddit has expanded its staff and offices in San Francisco, Los Angeles, Chicago and New York.
For the first time in several years, the company began to show substantial revenues, which, according to various estimates, range from $ 85 million to $ 100 million a year. At the same time, Reddit remains the largest social network that has not yet entered the stock exchange.
According to co-founder and CEO Steve Huffman, Reddit has no plans to actively hire employees or expand within the United States. However, the social network wants to engage in international development and promotion of the advertising platform. This will allow Reddit to compete more actively with the giants of online advertising Google and Facebook.
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