With Reddit users flocking to the site more than ever, now seems like the perfect time for the company to go searching for investors. Which is exactly what it's doing, but it's not cash that Reddit is after.
According to AllThingsD, the company is seeking certain elite investors that could help with company input -- rather than just fork over a wad of dough. A recent article by TechCrunch noted that the company's valuation has jumped to $400 million, but, according to AllThingsD, Reddit is actually only after around $1 million.
When Reddit was spun out in 2011 from the company that acquired it, Conde Nast, it had $20 million saved up, according to AllThingsD. Since then, the bare-bones company has only spent around $2 million. Apparently, it doesn't take a lot of money to keep the site staffed and running. By the same token, it's not likely that Reddit will become a cash cow for investors wanting a big return either. So, anyone considering an investment in the company would probably need to be interested the business also.
- TV bakery enjoys astonishing Facebook melt down
- Reddit appears on Google Glass, could turn us into zombies
- Sunil Tripathi, falsely linked on social media to Boston bombings, found dead
- Reddit regrets role in 'online witch hunt' for misidentified suspect
- Social media as breaking-news feed: Worse information, faster
One of the ways Reddit has driven more traffic to its site this past year is by hosting high-level AMAs, or "ask me anything" sessions. In August, Reddit hosted President Barack Obama, whose impromptu hour-long interview crippled the site's servers. Reddit has also done AMAs with the Mars Curiosity rover team, Gangnam Style's PSY, and U.S. Rep. Zoe Lofgren, who asked users for ideas on a bill to protect Web sites accused of copyright violations.
CNET contacted Reddit for comment. We'll update the story when we get more information.