Reddit has raised a fresh $410 million in funding, valuing it at more than $10 billion. The round, led by Fidelity Investments, has increased Reddit's valuation from the $6 billion it achieved six months ago. The move gives Reddit more of a war chest to build its business and attract new users.
The company makes most of its money selling advertising, which appears in the feeds of users who browse the many “subreddits,” or topic-focused forums, across the site.
Steve Huffman, Reddit’s co-founder and chief executive, said more than 50 million people now visit Reddit daily, and the site has more than 100,000 active subreddits.
The company will use the new funds to improve product features, focusing on how to make it easier for newcomers to explore and quickly understand the site, Mr. Huffman said. Reddit is also enhancing its video products with an eye toward more advertising.
The company is building its self-service advertising system, which could help appeal to small and medium-size business marketers. Reddit is also focused on expanding internationally. Most of the site is U.S.-centric, Mr. Huffman said - something he hopes to change.
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