Rumors have been swirling about Reddit being close to raising capital and AllThingsD has reported that this in fact the case. They just aren’t looking for a heck of a lot of money. Reddit (valued around $400 million) is apparently looking to raise just $1 million dollars. In comparison BuzzFeed raised a whopping $15.5 million earlier this week in their third round of funding.
Reddit isn’t looking for the cash from a VC firm, either; rather, they are only looking to certain angel investors. The likely reason for this is to gain influential investors rather than simply obtaining cash. According to AllThingsD Reddit still is carrying 18 million of the 20 million dollars they had in the bank when they spun off from Conde Nast. With the ability to get in on growing social network with tons of upside, its not expected that Reddit will not be long to find investors.
For more information see AllThingsD.