In October 2014, Reddit raised $50 million in a funding round led by Sam Altman and including investors Marc Andreessen, Peter Thiel, Ron Conway, Snoop Dogg, and Jared Leto. Their investment valued the company at $500 million then.
In July 2017, Reddit raised $200 million for a $1.8 billion valuation, with Advance Publications remaining the majority stakeholder.
In February 2019, a $300 million funding round led by Tencent brought the company's valuation to $3 billion.
Because modern day valuation for tech companies is so fucking "pie in the sky" it isn't funny. Reddit has never been profitable so the valuation is just based on future potential - what if's - maybe they could monetize each user by 0.20 cents each.... and we'll figure out how to monetize them later.
It doesn't need to be profitable if it has nonmonetary returns. The ability to influence the outcome of an election is far more valuable then the US dollar
Condé Nast Publications acquired Reddit in October 2006.
In 2011, Reddit became an independent subsidiary of Condé Nast's parent company, Advance Publications.
In October 2014, Reddit raised $50 million in a funding round led by Sam Altman and including investors Marc Andreessen, Peter Thiel, Ron Conway, Snoop Dogg, and Jared Leto. Their investment valued the company at $500 million then.
In July 2017, Reddit raised $200 million for a $1.8 billion valuation, with Advance Publications remaining the majority stakeholder.
In February 2019, a $300 million funding round led by Tencent brought the company's valuation to $3 billion.
Why does a company 'worth' 3bn need a pesky 300m in funding?
Because modern day valuation for tech companies is so fucking "pie in the sky" it isn't funny. Reddit has never been profitable so the valuation is just based on future potential - what if's - maybe they could monetize each user by 0.20 cents each.... and we'll figure out how to monetize them later.
Youtube isn't profitable either.
It doesn't need to be profitable if it has nonmonetary returns. The ability to influence the outcome of an election is far more valuable then the US dollar