What happened
In February 2021, amid the GameStop trading frenzy that brought a surge of new users, Reddit announced a Series E funding round of more than $250 million led by the venture firm Vy Capital. The round doubled Reddit's valuation to about $6 billion, up from the roughly $3 billion it had reached in its February 2019 round led by Tencent.
Reddit later expanded the round to approximately $367 million from new and existing investors, with reports that the company aimed to raise as much as $500 million. The financing capitalized on Reddit's heightened cultural prominence during the meme-stock episode and provided fresh capital as the company scaled its advertising and product teams in the run-up to its 2024 public listing.