INTERNET WHINGING ENGINE Reddit (you thought we were going to say Twitter, didn't you?) has received additional funding, but at a rate lower than any other social network.
It's debatable if Reddit actually is a social network in the traditional sense, but either way, its latest valuation of $3bn is dwarfed by other "Web 2.0" platforms, based on its user base.
Reddit reports that it has received $300m in Series D investments, putting it below Facebook (natch), Snap, Twitter and Pinterest at just $0.30 per active user.
Reddit is planning a public flotation (IPO) later this year, based on a 250m average monthly users, and even Twitter, which is finally turning a profit despite failing to find a new audience is ranked higher.
Facebook, by comparison, reports 2.32 billion monthly average users, putting its revenue per user at $7.37.
Reddit, which is still comparitively niche, despite offering a much more granular way to interact with likeminded people has yet to comment, but it is understood that their investors include Chinese giant Tencent, which has joined the charge for Series D, as well as venture capitalists Sequoia, Fidelity and Andressen Horowitz.
The arrival of Chinese tech to the party rings alarm bells for many, especially with the timing around concerns about Huawei and ZTE.
Although these figures are far lower than its rivals, Reddit seems to be in a pretty healthy state, putting on $1.2bn since its last valuation back in 2017.
Reddit says it plans to use the extra money to expand its international presence and to grow its ad network, providing it with sustainability going forwards, but also to take the fight to Facebook and Google, the market leaders in the area.
"One of the things that's been very important to us is that we can now assure advertisers that you are going to have a positive experience on Reddit and potentially even a new experience, a new way of connecting with customers, free from abuse and other kinds of misbehaving." said Reddit's CEO Steve Huffman in an interview with CNBC.
Despite this lower valuation, for content providers (yes, including INQ) a mention in Reddit is a holy grail, and can provide viral hits far more effectively than many others, thanks to the way it targets niche groups to ensure it's not just getting to people, but it's getting to the right people - something that advertising platforms still salivate over. μ
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