reddit Announces New Funding and Equity for the Community
October 02, 2014
Online sharing community site reddit has announced that it raised $50 million in Series B financing led by Y Combinator president Sam Altman, with participation from Sequoia Capital, Andreessen Horowitz and a host of individuals including Peter Thiel, founder of Paypal. The capital will be used for hiring (the company currently employs around 60), as well as paying for rising infrastructure costs and developing new tools for community managers and moderation. reddit was valued at just over $400 million earlier this year, and with the new round, its valuation could reportedly jump upward of $500 million. As part of the financing, the investors have earmarked 10% of their shares to be distributed back to the community and its contributors.