Reddit has started 2021 off with a bang, as interest in the front page of the internet increased tenfold following the now infamous GameStop-Wallstreetbets incident. On the back of that event, Reddit bought a five second ad spot during the Super Bowl over the past weekend to celebrate its community, blowing its entire advertising budget in the process.
Now Reddit is looking to recoup some of those funds during a recent series E funding cycle, where it was able to raise $250 million.
The comment on recouping its ad budget is made in jest, but Reddit is indeed looking to use the money raided in this funding round to bolster its strategic marketing efforts in 2021.
“We have raised more than $250 million in Series E funding from existing and new investors. We decided that now was the right opportunity to make strategic investments in Reddit including video, advertising, consumer products, and expanding into international markets,” explains a blog post regarding the funding.
“We are also readying to double the number of Reddit employees this year; it’s surprising not only for the pace of growth but also that such a relatively lean team has been behind one of the most visited websites in the world. We are confident in our mission to provide community and belonging to everyone and are well-positioned for the growth we have planned,” it adds.
Now its 16th year, as TechCrunch notes, Reddit has raised $800 million in funding to date, with the past few years seeing the largest series in the site’s relatively short history. On top of the $250 million in series E, a Tencent-led funding push garnered $300 million , so this most recent series is not its largest to date.
Either way it will be interesting to see how Reddit puts these funds to use, with the prospect of new consumer products getting our ears pricked up. Perhaps something involving the newly acquired Dubsmash is on the cards?