Social media platform Reddit has doubled its valuation to $6 billion after the GameStop hysteria created by a Reddit community. The platform received $150 million in funding according to a Wall Street Journal (WSJ) report.
The valuation of the platform was $3 billion back in February 2019 when it last raised funding. This time it raised $250 million worth funds, most of which came from venture-capital firm Vy Capital. The Chief Executive of Reddit Steve Huffman told WSJ in an interview that they decided to raise money because the valuations are currently very high. “It never hurts to raise money when there is an opportunity to do so and Reddit has had a strong year”, he said.
Huffman also said that the company’s advertising revenue rose to 90% in the Q3 of the fiscal year ending December 2020.
