Reddit Aim To Raise $50 Million In Major Funding Round

Reddit Aim To Raise $50 Million In Major Funding Round

Reddit is currently in the middle of raising around $50 million, according to unnamed sources knowledgeable about the negotiations of the company. Sources revealed that two venture capital companies, Sequoia Capital and Andreessen Horowitz, may join in the major round of funding for the popular social news website.

The news website provides an opportunity for anyone to post any content on the website. The posted content are then voted up or down by its community of users. The company was established in 2005 through seed capital from an organization offering funds to early-stage startups, Y Combinator. Reports have indicated that some people in Y Combinator have expressed interest in participating negotiations. The move of the organization is unexpected since it mainly focuses on startups.

The involvement of Y Combinator may be linked to Alexis Ohanian, co-founder of Reddit. Ohanian, who is a Y Combinator partner, may have proposed making an investment on the social news website.

Around 133 million people visit the website of the company every month. Articles, gifs, images, and other content can be posted by anyone. Content posted on the website are voted up or down by the community of users of the website. Whenever a website becomes prominent, it may result to a good volume of referral traffic.

The website has overtaken Digg, which was the top social news website in the past. Users started to transfer from Digg to Reddit around four years ago due to some issues with the website. Although Digg has lost a good number of users to its once-smaller rival, it remains to be a news aggregator.

Sources have not revealed when the company announced its major round of and it remains uncertain whether it will reach its goal of raising $50 million. For the moment, Reddit has not released any statements in connection to reports of its major round of funding.

Posted by James Fried on Thursday September 11 2014, 2:59 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0