Reddit has raised $200 million in new funding — cash the 12-year-old discussion site plans to use to modernize its user experience — giving it a valuation of $1.8 billion.
The funding, first reported by Recode, comes from investors including Andreessen Horowitz, Coatue Management, Fidelity, Sequoia Capital, and Vy Capital.
Condé Nast acquired Reddit in 2006 before spinning it off in 2011. Advance Publications, Conde Nast’s parent company, remains Reddit’s majority shareholder; Advance didn’t participate in the latest round of funding.
Reddit had 48 million U.S. unique monthly visitors in May 2017, which made it the 64th most popular website in the States, according to comScore. Globally, Reddit claims to have some 300 million monthly users.
The privately held company doesn’t disclose financial info. Two years ago, Reddit said it had generated just $8.3 million in advertising revenue. Last month, Reddit announced an effort to launch video ads — and recently initiated a test for user-uploaded video — and also plans to insert ads into the site’s discussions feeds.
The active chat site has a reputation for freewheeling — and sometimes controversial — discussion threads. In 2015, the self-proclaimed “front page of the internet” enacted a new policy banning illegal speech, harassment and bullying, a step that included shutting down several blatantly racist subreddit boards. Here’s its mission statement: “On Reddit, users can be themselves, learn about the world around them, and be entertained by the content created and shared by our global community.”
Reddit was founded in 2005 by Alexis Ohanian and Steve Huffman, who currently serves as CEO. Huffman stepped into the chief exec spot after interim CEO Ellen Pao resigned, prompted by a virulent backlash among vocal Reddit users angry that she fired the company’s high-profile communications director.