Reddit IPO: Reddit Joins the IPO Movement with Confidential Filing
Key Takeaways:
- Social news aggregation website has filed for an IPO with the SEC
- Up to this point, the company has successfully raised $1.3 billion from private investors.
- Some of the most noteworthy investors include Andreessen Horowitz, Tencent Holdings, Sequoia Capital, and Fidelity.
- Reddit’s current evaluation is $10 billion and the company expects its valuation to reach $15 billion when the IPO reaches the market.
Social news aggregation media site Reddit has filed for an IPO. The company has made a confidential filing with the U.S. Securities and Exchange Commission (SEC) for an IPO. The company aims to reach a $15 billion valuation when the IPO comes to the market.
Message boards on the website have played an important role in popularizing “meme stocks”. Besides, Reddit also has a major influence on equities and trading activity that is primarily driven by user opinions on social media.
Multiple posts made by WallStreetBets have also been at the heart of several trading controversies in 2021. For example, the short squeezes on AMC Entertainment Holdings, Inc made headlines this year.
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Reddit’s rising valuation
Stock trading controversies touched their peak in February 2021. At that time, Reddit’s valuation touched $6 billion – a two-fold growth from what it was a year earlier. In August 2021, the company’s valuation touched $10 billion.
Reddit has raised a total sum of $1.3 billion in eight fundraising rounds. The Series F round, which was also the latest funding round, closed on August 12, 2021, and managed to bring in $410 million.
As of now, Reddit has around 28 investors, which includes popular names such as Sequoia Capital and Fidelity Management and Research Company.
Some other noteworthy investors include Tencent Holdings Limited and Andreesen Horowitz.
More about Reddit’s confidential filing
Reddit has come out to say that it has not indicated the number of shares that are on offer nor the offering price. The offering will be completed after the SEC reviews, subject to other market conditions.
The confidential Reddit IPO allows the company to work with the SEC privately to ensure that the first document seen by the investing public is clean. Besides, up to that point, Reddit can keep its sensitive information such as customers, revenue, users, and data privacy.
More about Reddit
Reddit is based in San Francisco, United States, and was founded by Steve Huffman, Aaron Swartz, and Alexis Ohanian in 2005. Over the years, Reddit has attracted millions of users that participate in niche discussion groups.
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