Reddit Is Raising $1 Million, €763,000 but It Doesn't Need It
The company is valued at $400 million and is raising funds mostly to get the investors
Reddit is going from strength to strength and its public profile couldn't be any higher when the likes of Barack Obama stop by for chats with regular redditors. As a business though, Reddit isn't the home run its traffic numbers would suggest.It's making money, but keeps advertising very limited, for good reason. Still, it's only got a handful of employees, so it's making do for the time being.
Still some more money can't hurt, so it's not surprising that Reddit is raising some funding. What is surprising is that it's raising these funds mostly for the sake of it.
It only plans to get $1 million, €763,000 at a valuation of $400 million, €305 million. It's got maybe 20 times that in cash already so it doesn't need it. Instead, it's doing it for the investors, it's only accepting money from an elite angel investors and it's rather obvious that it's only doing it to get those people involved.