Reddit will double the variety of workers it has over the course of this yr to round 1,400 after elevating $250 million in a brand new funding spherical, the company has announced. Reddit at the moment has round 700 workers globally. Over 600 are based mostly within the US, according to CNBC, the place it has workplaces in San Francisco, New York, LA, and Chicago.
The announcement of the brand new funding spherical comes as the positioning’s r/WallStreetBets subreddit gained widespread attention for its position in growing the share costs of GameStop, AMC, and different firms. Redditors organized to buy shares in sure firms en-masse, turbocharging their inventory costs on the expense of short-selling hedge funds. As of final week the Securities and Exchange commission is reportedly investigating whether or not misinformation posted on social media might have violated securities legal guidelines.
Reddit CEO Steve Huffman tells The Wall Street Journal that the corporate isn’t planning on “materially altering” its technique on account of the funding spherical. The corporate says it plans to make use of the cash to spend money on video, promoting, shopper merchandise, and worldwide enlargement. On Sunday, Reddit mentioned that it spent its whole advertising and marketing price range on a single 5-second Super Bowl ad celebrating its position within the GameStop shares saga. Final yr Reddit acquired Dubsmash, a “short-form video social platform” whose video creation instruments it plans to combine into its personal platform.
Reddit’s valuation doubled to $6 billion on account of the brand new funding, in accordance with the WSJ. Final quarter, the corporate’s direct promoting income was up 90 p.c in comparison with the identical interval a yr earlier, Reddit says.
As of December, Reddit boasted 52 million daily active users, For comparability, Fb has round 1.85 billion every day customers, Snapchat’s mum or dad firm Snap has 265 million every day energetic customers, and Twitter latest mentioned it averages 187 million.