Reddit Valuation Soars to $10bn in New Funding Round

Reddit has raised $410m from Fidelity Investments at a valuation of about $10bn.

Six months after closing a funding round that doubled its valuation, Reddit is locking in a roughly 50% increase, driven by money managers hunting for investments.

The company said it expects to secure additional financial commitments from new and existing investors to bring the total raised to as much as $700m. In February, the company said it had raised about $500m in late-stage funding at a $6.5bn valuation. 

Bumper financing rounds with big leaps in valuation are becoming almost routine for many startups as big money-management firms and others are pouring massive amounts of funding into Silicon Valley, hunting for healthy returns at a time of low interest rates. Fanatics Inc., the sports retailer, recently announced it had tripled its valuation in a year to $18bn. Clubhouse, the startup audio-chat social network, secured a $1bn valuation earlier this year. It quadrupled that figure within about three months, according to people familiar with the matter.