Categories: Tech & Society

Confirmed, Reddit is Raising $1 Million at a $400 Million Valuation

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

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

Recent Posts

Why everything is a subscription now & what it means for your wallet

In the last decade, purchasing and accessing products and services have undergone a radical transformation.…

1 day ago

Mumbai students win big at robotics championship in Chicago, headed to world finals

In an exceptional achievement, Mumbai-based high school robotics team Sigma 9692 has won the prestigious…

2 days ago

Indian gaming shifts from audience to creator “given India’s mobile-first gaming capabilities”

The Indian gaming industry is sitting on an industry explosion in the near future as…

2 days ago

Transforming modern business operations: How Microsoft 365’s AI Integration is automating HR workflows & enhancing employee experiences

In today's fast-paced business world, when employee fulfillment and efficiency are crucial, technology has become…

3 days ago

Outbound & inbound: India attracts businesses from UK, China & US while expanding to Middle East

The Tech Panda takes a look at how India has been attracting foreign businesses from…

3 days ago

UPI value & volume surpass records in March

India’s digital payments ecosystem achieved a record high in March, with UPI transactions reaching INR24.77…

3 days ago