A fundraising round led by Fidelity Management will raise up to US$700 million for the social media network Reddit. The company announced this today, which tripled its valuation to over US$10 billion. Reddit already raised $410 million from Fidelity during the start of the year in its second funding round.
Fundraising grew when small-time traders gathered on Reddit to battle against the Wall Street institutions. The traders were initially concentrated on Reddit’s WallStreetBets forum but are now all over the discussion boards. This caused Wall Street to change how they operate as it caused major losses for some funds and skyrocketing gains in the shares of companies like GameStop and AMC.
During the trading frenzy, Reddit’s valuation had already doubled to roughly $6 billion last February 2020. The company was founded in 2005 out of San Francisco by chief executive Steve Huffman, Entrepreneur Alexis Ohanian, and late Internet activist Aaron Swartz.
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