Reddit, a globally popular American-based social forum, news,and discussion website, is making waves with its IPO. Ranked 18th globally in website traffic, it’s poised to follow in the foot steps of social media giant META

The attention-grabbing platform gained investor interest when traders on subreddit r/WallStreetBets triggered the historic rise of meme stocks like GameStop and AMC in early 2021.


Reddit’s main revenue source is from advertising, with 98% coming from ads in 2022 and 2023.

Reddit’s funding rounds are proving strong for the company, with several rounds boosting its value exponentially. The company has raised $1.3 billion in funding over nine rounds. The latest funding was raised on August 12, 2021, from a Series F round of $410 million.

2022 Revenue – 668 million

2023 Revenue – 804 million up 21% YOY


In a unique move, Reddit is offering its top users the opportunity to participate in the IPO early through a \"directed share program\" outlined in the filing. Users will be categorized into six tiers based on their karma score or moderator activities.

Top-tier users will have the opportunity to buy into the IPO before its public debut as a token of appreciation for their loyalty and engagement. This demonstrates Reddit’s dedication to its users as much as their commitment to the platform’s growth.

In a recent development, Google and Reddit have struck a deal allowing the search giant to utilize Reddit’s data for training its AI model on user posts and interactions. This $60 million agreement is a significant move in the realm of AI, benefiting both parties as Reddit gains access to advanced AI models to enhance its internal search and other functionalities.


As Reddit nears its IPO, OpenAI’s Chief Sam Altman is spotlighted as a crucial investor. Altman’s strategic foresight to invest in Reddit since 2014 could yield a significant financial return. Holding an impactful 9.2% of voting power, Altman’s investments, totaling at least $60 million, underscore his pivotal role and potential for considerable gains with Reddit’s public offering, solidifying his influence within the platform.

• Reddit has an average of 73.1 million daily active users.
• As of October 2023, Reddit is the 18th most-visited website in the world.
• Investors are eager as this is the first social media IPO in years, following Pinterest’s debut in 2019.
• Although sales are flat, Reddit is embracing the AI era, capitalizing with licensing deals to use their data and improve AI models (Google as of latest).
• Sam Altman really believes in Reddit since 2014 and is a major investor with over 9% voting rights.

Sources: Bloomberg, crunchbase.com, New York Times, CNBC, Reuters, Business Insider