Reddit is aiming to raise $150 million (£177m) from investors as it looks to expand content across its platform.
The company is aiming to develop new content areas in order to engage its users, with a $150m financial injection valuing it at around $1.7bn.
Reddit is popular for attracting users to its link sharing website, including social news links, images, and video which consumers rank according to preference.
Investment from previous venture capitalists has included various entrepreneurs from Silicon Valley and Hollywood. In 2014 Joshua Kushner, Marc Andreessen, Peter Thiel, Jared Leto, Snoop Dogg, and Y Combinator’s Sam Altman, provided a sum of $50 million altogether. This investment helped the company improve its marketing and advertising strategies.
Determined to provide better quality features for its website, the company is in need of expanding its platform to include more organised content, and easier navigation for users. A key change will include the company’s new ideas for multimedia content to engage consumers with new formats.
Reddit has experienced a growing popularity over the years, according to online traffic statistics listed on RedditMetric.com. Although, it has struggled to find a sustainable business model from which to operate from, according to a critic from Bloomberg Technology.
The link sharing site has undergone a number of high profile changes over a period of time. It has had several different CEO’s over the past few years but current CEO Steve Huffman is looking to grow it.
Founders of the company have sought to expand the reach of the site by adding new features, whilst re-organising and sustaining multimedia content. This includes implementing additional tools for publishing, and improving mobile content.
With more financial backing, the company is said to have specific goals in place to make improvements, as stated by sources from Bloomberg Technology. This includes experimenting with various advertising formats, and a premium subscription service.
An anonymous employee for the company stated that no finalised agreement with investors has been made, according to The Economic Times.