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Reddit ready to take on Facebook and Google

Social media network Reddit raised $300 million in its latest funding round, led by Tencent Holdings Ltd, giving it a market valuation of $3 billion.

The company disclosed on Monday it has raised $300 million at a $3 billion valuation. Looking back in 2017, the company took in a $200 million in investment giving them a valuation of $1.8 billion, clearly a huge difference between the two figures.

The series D funding round saw a $150 million investment from Tencent and the company’s former investors, including Sequoia, Fidelity, Tacit and Snoop Dogg. With this financing, the company says it plans to expand internationally and grow its ad platform.

The company has over 20 investors, including Advance Publications, which owns Conde Nast, Reddit’s one-time parent company.

The company was recently breached wherein the systems and data – including current email addresses and a 2007 database back up containing old encrypted passwords – were infiltrated by hackers. Reddit, however, primarily shrugged it off, saying the attacker gained read-only access to some systems that contained the backup data.

Since Reddit was founded in 2005, it has drawn criticism and concerns over abuse, harassment and piracy on the platform. But Reddit CEO, Steve Huffman, said the company has invested in better technology to catch abuse and better tools for its users to report it.

In addition, Huffman said they are reinventing the ads business, both on the technology side and their ability to sell it and to create a friendly home for users and brands alike.

With the additional financing, Huffman also said he hopes to take a piece of Facebook’s and Google’s massive market share in online advertising.

As of November 2017, it is articulated in their website that Reddit has more than 330 million average monthly active users, with 14 billion screen views per month.