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Reddit announced Monday that it has raised $300 million at a $3 billion valuation, up from a $1.8 billion valuation in 2017, when the company took in a $200 million investment.

Expand chart
Data: News reports; Chart: Harry Stevens/Axios

Why it matters: Reddit has focused its efforts over the past year on cleaning up its platform to build a better advertising model.

  • The 23-year-old social platform has been criticized in the past for lax regulation around hate speech, piracy, harassment, and even more recently, election interference — things advertisers don't like to be associated with.

Between the lines: Reddit has roughly 330 million monthly active users (MAUs), which means it's about the same size as Twitter — but its efforts to monetize those users haven't been great yet.

By the numbers: CNBC reports that the company's annual revenue is roughly $100 million, meaning each user is worth around 30 cents. By comparison, average revenue per MAU, as of the fourth quarter of 2018...

  • Facebook: $7.37
  • Twitter: $2.83

A big part of Reddit's value to advertisers is the demographic of its audience, which is mostly users ages 18–34. On its website, Reddit says 63% of its users are under 25 and 87% are under 35.

The big picture: The company has pushed aggressively over the past year to both clean up its site and focus on more lucrative advertising opportunities, primarily video.

  • The company said last year that it was averaging over 1 billion native video views and almost 1 million video uploads each month on its platform.
  • It credits a recent redesign for being a significant driver for adoption for both video creators and consumers, saying that the redesign helped foster 50% increase in video posts over the "old" Reddit.

Tune in: Reddit co-founder Alexis Ohanian will sit down with Axios' Dan Primack today on his Pro Rata podcast. Follow Dan on Twitter to check it out once it's posted this afternoon.

Go deeper: Reddit's rising popularity as a news platform

Go deeper

Ben Geman, author of Generate
17 mins ago - Economy & Business

GM's shrinking deal with Nikola

Illustration: Rebecca Zisser/Axios

General Motors will no longer take an equity stake in Nikola Corp. or build its pickup truck, under a revised deal that still envisions GM as a key tech supplier for Nikola's planned line of electric and fuel cell heavy trucks.

Driving the news: The revised agreement Monday is smaller in scope than a draft partnership rolled out in September that had included a $2 billion stake in the startup and an agreement to build its Badger pickup.

1 hour ago - Technology

Exclusive: Facebook's blackout didn't dent political ad reach

Photo: Valera Golovniov/SOPA Images/LightRocket via Getty Images

Americans saw more political ads on Facebook in the week before the 2020 election than they did the prior week despite the company's blackout on new political ads during that period, according to Global Witness, a human rights group that espouses tech regulation.

Why it matters: The presidential election was a key stress test for Facebook and other leading online platforms looking to prove that they can curb misinformation. Critics contend measures like the ad blackout barely made a dent.

Wall Street wonders how bad it has to get

Illustration: Aïda Amer/Axios

Wall Street is working out how bad the economy will have to get for Congress to feel motivated to move on economic support.

Why it matters: A pre-Thanksgiving data dump showed more evidence of a floundering economic recovery. But the slow drip of crumbling economic data may not be enough to push Washington past a gridlock to halt the economic backslide.