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. 

SEE ALSO: Canva’s Valuation Touches $40 Billion After Raising $200 Million in Latest Funding Round

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. 

SEE ALSO: Robinhood Completes Acquisition of Cross-exchange Platform Cove Markets

Feature Image Source: rawpixel.com

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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