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Discussion: Reddit worth 12.8 million dollars?
Guess many of you know this already. But is Reddit really worth that much?
Their income-source is one big ad on the right that I never even thought about clicking.
http://sam.bluwiki.com/blog/2007/04/y-combinators-portfolio.html
YC Companies that have been acquired / sold:
Reddit
- Valuation: acquired by CondeNast for a reported $12.8 million [3].
- Equity: An initial 8% diluted to 7%, additional 3% in the first round of funding. Justification: They were initially rejected, & YC didn't like their initial idea (hence the high 8%). A year after starting, reddit did seek additional capital (<$100,000). At that time, I'm guessing that they had a premoney valuation of $1MM, meaning their the 8% would be diluted to approximately 7%. My guess is that YC provided at least $30,000 of the this funding, for an additional 3%.
- Invested capital: Initial $15,000 with an investment about a year later of ~$30,000
- zacharye 18y ago"is Reddit really worth that much?" - Why not? A product is worth whatever you can get someone to pay for it.
- marvin 18y agoWhat the parent asks is not about value in the Syrusian sense, but whether the aquisition price was justified - whether the acquisition will in actuality increase Condé Net's value by more than this amount. Obviously, whoever gave a green light for the purchase must have thought so.
- ConradHex 18y ago>Obviously, whoever gave a green light for the purchase must have thought so. You could be right, or there could be other motivations. For example, maybe they thought the company had a one-in-five chance of being worth ten times that much in two years, so they figured it was worth the price.
- mpc 18y agosure why not
- mattmaroon 18y agoI wouldn't put much stock in those numbers. I have no idea what Reddit sold for, but I'm told that the numbers reported varied widely and were almost all very wrong.