23 votes

Reddit is raising up to $700M in Series F funding, at a valuation of over $10 billion

8 comments

  1. Deimos
    Link
    Updating from the Series E only 6 months ago, that's now a total of over $1.5 billion in venture capital in the last 4 years.

    Updating from the Series E only 6 months ago, that's now a total of over $1.5 billion in venture capital in the last 4 years.

    17 votes
  2. [5]
    nacho
    Link
    Who in their right mind thinks that a company that's at an F round of funding (which means they're burning through cash rapidly), with around $30 million in advertising revenue a month is worth 10...

    This year Reddit marked its first $100 million advertising revenue quarter (Q2 2021), representing a 192 percent increase compared to the same period last year.

    Who in their right mind thinks that a company that's at an F round of funding (which means they're burning through cash rapidly), with around $30 million in advertising revenue a month is worth 10 billion?

    Sure they make money from users directly too, but in what world do these new investors think they'll get huge returns at a 10 billion valuation of the company?

    Who are reddit's owners? Who's throwing money at this?

    17 votes
    1. [3]
      stu2b50
      Link Parent
      The blog post says the round is led by Fidelity Management and Research Company LLC, so you and your parents retirement funds I suppose are the ones throwing money at it. AFAIK they either...

      The blog post says the round is led by Fidelity Management and Research Company LLC, so you and your parents retirement funds I suppose are the ones throwing money at it.

      AFAIK they either majority owned or significantly owned by Conde Nast (which they were at some point fully owned by before being spun off)

      7 votes
      1. [2]
        nathan
        Link Parent
        Fidelity doesn’t get to use the funds in retirement accounts to invest in whatever it wants does it? It’s invested in whatever you set your investments to Unless it somehow gets to work like a...

        Fidelity doesn’t get to use the funds in retirement accounts to invest in whatever it wants does it? It’s invested in whatever you set your investments to

        Unless it somehow gets to work like a bank, lending out multiples of its customers assets and I’m just not aware

        1 vote
        1. stu2b50
          Link Parent
          I was mostly joking, but Fidelity Management and Research Company manages the money market funds Fidelity owns. So if Fidelity just manages your 401k or something and you have mostly stocks (as...

          I was mostly joking, but Fidelity Management and Research Company manages the money market funds Fidelity owns. So if Fidelity just manages your 401k or something and you have mostly stocks (as you probably should if you’re young), then your retirement fund did not invest in Reddit.

          Fair chance your parents may have money in a fidelity money market fund, though.

          Not really the kind of entity that invests in high reward, high risk equity, though, as VC or angel investor is. Makes me wonder if this is preparing for a direct listing.

          4 votes
    2. HotPants
      Link Parent
      Yet Reddit could easily IPO at $20-$40 billion. Reddit is doubling revenue yearly? I've seen price/sales multiples of 50-100 in the last year or two. We have a little bit of a tech growth bubble...

      Yet Reddit could easily IPO at $20-$40 billion.

      Reddit is doubling revenue yearly?

      I've seen price/sales multiples of 50-100 in the last year or two.

      We have a little bit of a tech growth bubble going on.

      4 votes
  3. an_angry_tiger
    Link
    Trying to get through the whole alphabet I see.

    Trying to get through the whole alphabet I see.

    6 votes
  4. moriarty
    Link
    They are also hiring like crazy and have extensive plans to monetize their user base. I've just been to a couple of rounds of interviews with them and the questions they've asked are laser focused...

    They are also hiring like crazy and have extensive plans to monetize their user base. I've just been to a couple of rounds of interviews with them and the questions they've asked are laser focused on it.

    4 votes