Reddit will raise $700 million in a fundraising round led by Fidelity Management, the social media network said on Thursday, August 12th. After cashing in on a hike in its influence in the financial world, its valuation tripled to more than $10 billion. The company reported that it had already raised $410 million from Fidelity in its second funding round since the beginning of the year when small-time traders gathered on its platform in their battle against Wall Street institutions.
The traders initially focused on Reddit’s WallStreetBets forum but have now spread across discussion boards and changed how Wall Street analysts operate, causing significant losses for some funds and powering considerable gains in the shares of companies, including AMC (AMC.N) and GameStop (GME.N).
Due to the trading frenzy, Reddit’s value had already doubled to $6 billion in February from a year ago. Its investors include venture capital firm Andreessen Horowitz, rap superstar Snoop Dogg and funds such as Sequoia Capital and Tencent Holdings (0700.HK).
