Reddit raises $410M in new funding
nytimes.com
Reddit raises $410M in new funding
1–10 of 507 posts
Re: Reddit raises $410M in new funding
#2yet reddit feels like it is dying.
non-political subs with very obvious political agendas.
The illusion of popularity-based ranking of articles when in reality it is mostly curated
Zero transparency on the moderators the big news and political subs
Control freak moderators on special interest subs.
Some big investors don't seem to be able to accurately gauge what an internet property is worth. Look at Verizon buying tumblr for $1 billion
Re: Reddit raises $410M in new funding
#3> The company will use the new funds to improve product features, focusing on how to make it easier for newcomers to explore and quickly understand the site, Mr. Huffman said. Reddit is also enhancing its video products with an eye toward more advertising. And the company is building its self-service advertising system, which could help appeal to small and medium-size business marketers.
> Reddit is also focused on expanding internationally. Most of the site is U.S.-centric, Mr. Huffman said — something he hopes to change.
When it comes to advertising, other platforms offer a much more lucrative user base. Reddit users aren’t worth very much to advertisers. International users will probably be worth even less. And there is no guarantee that Reddit would hit it off with an international audience.
In short, I just don’t see them doing well if they go public.
Re: Reddit raises $410M in new funding
#4So, pretend you are in charge of spending $410 million dollars at Reddit. What would you spend it on?
From my amateur perspective I've got,
2 web devs, 1 backend engineer, 3 devops. Pay them very generously and that's $1.2 million spent.
I have no idea what I would do with the rest..
Re: Reddit raises $410M in new funding
#5How do they come up with this?
Is the long death of reddit, really the TikTok-isation of reddit into yet another vapid commercial meh-space?
Will this actually succeed, or is this the pump before the dump?
Re: Reddit raises $410M in new funding
#6So, pretend you are in charge of spending $410 million dollars at Reddit. What would you spend it on? From my amateur perspective I've got, 2 web devs, 1 backend engineer, 3 devops. Pay them very generously and that's $1.2 million spent. I have no idea what I would do with the rest..
PR and sales. Always PR and sales.
Re: Reddit raises $410M in new funding
#7I'm honestly surprised to learn that Reddit is still VC dependant.
Seems strange to me that a 16 year old company still isn't self sustaining.
Re: Reddit raises $410M in new funding
#8yet reddit feels like it is dying. non-political subs with very obvious political agendas. The illusion of popularity-based ranking of articles when in reality it is mostly curated Zero transparency on the moderators the big news and political subs Control freak moderators on special interest subs. Some big investors don't seem to be able to accurately gauge what an internet property is worth. Look at Verizon buying…
reddit has always been dying to people who have been using reddit for a long time, but don't see how that's even remotely true
as someone who has used reddit for 7+ years now, the culture is definitely very different (not necessarily good) - but it has only continued to grow in terms of users
Re: Reddit raises $410M in new funding
#9On a visitor perspective, this seems undervalued. This is a 50% or more discount to the market-cap/unique visitor ratio of Twitter, Snap, and Facebook.[1] And all the stats I've seen indicate much higher user engagement and time on site for Reddit compared to the other social platforms.
The biggest issue is of course that their monetization is horrible. Like 95% lower per user than the other socials.[2] So the real question an investor should ask is whether this is fixable? Or is there something intrinsic to Reddit traffic that makes it difficult to monetize? Either way, Reddit should be throwing an insane amount of money and equity to get a Sheryl Sandberg like executive with a track record of juicing monetization.
[1]https://www.theverge.com/2020/12/1/21754984/reddit-dau-daily... [2]https://www.cnbc.com/2019/02/11/reddit-users-are-the-least-v...
Re: Reddit raises $410M in new funding
#10So, pretend you are in charge of spending $410 million dollars at Reddit. What would you spend it on? From my amateur perspective I've got, 2 web devs, 1 backend engineer, 3 devops. Pay them very generously and that's $1.2 million spent. I have no idea what I would do with the rest..
The biggest problem is that their revenue per user is atrociously low compared to other social platforms. That money should be thrown at poaching as much ads talent as possible from Facebook or Twitter.