Reddit Raises $200 Million
Online forum site Reddit announced it has secured $200 million in financing. Seven investors participated in the round: Andreessen Horowitz, Sequoia Capital, Coatue Management, VY Capital, Fidelity Insurance Company, Y Combinator, and SV Angel.
Reddit is a platform that allows online communities to submit links, create content, and hold discussions about any topic that interests them. Users can post links to content on the web and other users can then vote the posted links up or down, causing them to appear more or less prominently on the site’s home page.
Reddit was founded by University of Virginia roommates Steve Huffman and Alexis Ohanian in 2005. Condé Nast Publications acquired the site in October, 2006, and continues to be the site’s largest shareholder. Since August, 2012, Reddit has been operating as an independent entity. According to its most recent numbers, Reddit has 542 million monthly visitors and 234 million unique users per month, ranking it as the fourth-most-visited website in the U.S. and ninth in the world.
The company revealed that the capital will be used to redesign Reddit’s famously cluttered homepage. The company also plans to dedicate more resources to user-uploaded video.
