Reddit Gets $50 Million in FundingSeptember 30, 2014
And investors are making an unusual move…
That unusual move is that investors have promised that 10 percent of that $50 million will be shared with the Reddit community of users. While no one is sure how exactly Reddit will be able to achieve this and how this will be distributed, Sam Altman, a lead investor told The Verge that it will most likely use a block chain method similar to the systems used to create and distribute Bitcoin.
In a blog posted earlier today by Yishan: Sam is the President of Y Combinator, the incubator that originally helped launch reddit. He is one of the first handful of reddit users, a member of the same YC batch that Steve and Alexis were in. He signed up at a dinner with Steve and Alexis when they showed a beta version of reddit to get feedback. He’s a long-time fan of reddit, and is excited to help us take reddit to the next stage.
With the money, reddit is looking to hire more staff after having previously operated on a shoestring budget; they have over sixty staff members now and are eager to add more. They’ll be expanding their community management team, hire more staff onto product development, expand their mobile app offerings, pay for their growing technical infrastructure and much more.
Yishan left an incredible comment about the new funding on the blog post, saying:
[blockquote]”…An investment like this doesn’t mean we’re rich or successful. A couple days after we closed the financing, Sam came to our office and handed me a genuine 100 trillion dollar Zimbabwean note, as a reminder to us of the difference between money and value. Money can become worthless very quickly, value is something that is built over time through hard work.[/blockquote]
Are you an avid reddit user? What changes do you hope will be made now that they’ll have the people power behind the site? Leave your comments below!