Social news sharing site Reddit is now valued at $500m after it raised $50m from a round led by Y Combinator president Sam Altman, Snoop Dogg and Peter Thiel.
Founded in 2005 and acquired by Conde Nast before being spun off as an independent division, Reddit has more than 60 employees.
Chief executive Yishan Wong said in a blog post that the site will hire new staff with the extra funding, build better tools for managing the website and work on mobile content.
But the true power behind Reddit has always been its community, which with its up and down votes, all but runs coverage of major breaking news events and the popular Ask Me Anything sessions where the world’s most powerful politicians, celebrities and business moguls field real-time queries.
Altman today fielded his own AMA, answering questions about the latest funding round.
“We’ve long been trying to find a way for the community to own some of Reddit, because it is your contributions that help to anchor the site and give it strength,” Wong said.
To that end, the new investors have flagged giving 10 per cent of their shares back to the Reddit community.
“We’re going to need to figure out a bunch of details to make it work, but we’re hopeful,” Wong said.
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