Reddit is built on venture capital. It has raised over 1.3 billion dollars this way. You can find out how Reddit is financed over here.

Reddit is absolutely a startup, and that’s their problem. They never managed to turn their startup into a real business.

IMO this loss-leader venture capital bullshit undercutting real businesses should he illegal. Sadly for most internet users, banning that shit would make most internet services more expensive.