Reddit Secures $50 Million from Multiple Donors
Popular online messaging board Reddit has received $50 million in venture capital funding, the company announced Tuesday. Further, they will share 10 percent of that fund to its users.
Among the investors who helped fund this $50 million were rapper Snoop Dogg and Marc Andreessen of Andreessen Horowitz.
Reddit is a very basic website by design, but its content is almost unlimited. It used to be an affiliate of Conde Nast, but it was spun off into its own independent, private company.
With the $50 million, Reddit CEO Yishan Wong said the website can improve itself and grow its staff. Currently, Reddit only employs 60.
"An investment like this doesn't mean we're rich or successful," Wong said in a blog post. "Money can become worthless very quickly, value is something that is built over time through hard work."
Reddit is often the subject of controversial posts and unmoderated messages, but the company defends this policy.
The company already said they are going to donate 10 percent of their 2014 ad revenue to charity. They also said of the $50 million they are going to give 10 percent of that back to their users, although that could get messy.
Reddit was simply a startup company with a huge variety of postings and is now a company that has a valuation of as much as $500 million. Many hope that this new $50 million infusion does not change the company too much.
"We have been entrusted with capital by patient, long-term investors who support our views on difficult issues," Wong said. "We believe in free speech, self-governing communities, and the power of voting. We find that this freedom yields more good than bad, and we have chosen investors based on this belief."
Are you a Reddit user? What are your favorite things to read and post on that website? Leave us a comment below and let us know.
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!
* This is a contributed article and this content does not necessarily represent the views of latinpost.com