Reddit now has a valuation of over $10 billion thanks to a recent funding round that earned the social network some $410 million. Also, the company has filed to raise an additional $700 million in an upcoming investment round.
“We are optimistic and encouraged that not only are we resourced and capitalized to continue on our growth path but also that our investors support our vision and want to deepen their stakes in our future,” officials of Reddit said in a press release. “We will raise up to $700 million in Series F funding…at a post-money valuation of over $10 billion.”
Currently, Reddit’s monthly active users in the US stand at an impressive 52 million. The social network also ranks number 19 in global internet engagement, making it one of the most frequented in the world. Much like other social media platforms, Reddit generates most of its revenue from ads. The company published a second-quarter revenue of $100 million, up 192% from last year. Reddit says it is focusing on “expanding internationally in the UK, Canada, Australia, and more countries to come.” The company is also looking to go public in the near future.
Reddit’s Valuation vs. Facebook and Twitter
Although Reddit’s new valuation is impressive, the social network still has a lot of catching up to do. Reddit first went online in 2005, about the same time as rivals Facebook and Twitter. But right now, Facebook and Twitter are worlds ahead.
Facebook is now valued at $1 trillion. And the network has an active user base of 1.85 billion (over 35x that of Reddit). Not to mention Facebook has highly successful subsidiaries in WhatsApp and Instagram. Similarly, Twitter has a market valuation of $52 billion, and an active userbase of about 330 million.
All the same, though, Reddit’s new valuation proves that the social network has a promising future. If the network can maintain investor trust and focus on building innovative features, the future is bright.