Well, the kind of year Reddit has had, it was obvious that they’d want more. We recently reported a rumor about Reddit raising money. Well, today Peter Kafka of All Things D confirms that Reddit is raising money, somewhere around $1 million at a $400 million valuation.
But the Reddit crew seems to delight in flouting convention, so it also makes sense that there’s a twist to the funding round that’s currently under way. People familiar with the company say Reddit is only raising a fraction of the money it could — most likely about $1 million. And it only wants the cash from certain influential angel investors.
This sounds strange, right? You must be thinking why are they not raising more money if they can. Well, the fact is they don’t need it. When Conde Nast spun out Reddit as an independent company in 2011, they already had $20 million in the bank. Now, even after over a year, Reddit has managed to drive enough traffic to it’s site with a lean staff. So, even now they do have around $18 million. So, according to reports, what Reddit CEO Yishan Wong is looking for is not cash, but for some valuable inputs from influential Silicon Valley investors.
And any angel who does put money in is likely more interested in something other than a financial return. If Reddit figures out a scalable business model, it could well be worth much more than $400 million.
We’ll keep you updated as we hear more.
Backupify
AI is no longer in the distant future, discussed only in university classrooms or interactive…
The Tech Panda takes a look at recent mergers and acquisitions within various tech ecosystems…
As robotics progresses towards creating humanoid robot helpers, our tendency is to create them in…
On June 7, 2025, Japan enacted a series of regulations aimed at enabling stronger consumer protections…
Introduction: The Signal Behind Snowflake’s CEO Change In the spring of 2024, Snowflake, a star…
The modern space race is increasingly political, driven by national pride, military strategy, and economic…