Reddit’s upcoming Series D round is at a US$2.7-billion pre-money valuation. Chinese conglomerate Tencent will lead it with US$150 million, according to TechCrunch’s sources. The  social-media platform is raising between US$150 million and US$300 million—depending on how much it raises, its post-money valuation could reach US$3 billion. (TechCrunch)

Talking point: Reddit’s link-sharing forums are continuing to grow; its 150,000 subreddits now have 330 million monthly active users. The platform has also started to sell cost-per-click ads alongside promoted posts plus cost-per-impression and video ads. With a 22 per cent engagement increase and 30 per cent rise in total views, Reddit made over US$100 million in revenue in 2018. However, until those newer ad products fully gain traction, it’s still relying on venture capital for funds. Money from Tencent will help Reddit until then. Tencent is the largest gaming company in the world through its ownership of League of Legends and stakes in Supercell (Clash of Clans) and Epic (Fortnite). That said, China’s recent gaming-addiction crackdown has taken a hit on its valuation. For the Chinese conglomerate, investing in Reddit is a way to diversify its portfolio.