What is Reddit and How They Became a $6 billion Company
Why Startup Exit Strategists Rewatch This 17-Minute Reddit Premature Sale Case Study Reddit founders Huffman and Ohanian sold to Condé Nast for "$10 million maybe 20" after "less than one year old" in 2006—original idea rejected by Y Combinator, pivoted to "front page of internet." Stagnated under legacy media ownership until 2014 Series B "$50 million, nine years after birth of company" featuring "Silicon Valley Elite—Ron Conway Mark Andreessen Snoop Peter Thiel Y Combinator Sam Altman." Founders returned, achieved "$1.8 billion valuation" 2017, now "number 18 website by traffic in world." The instant buyer warning at 13:59 reveals exit principle: "$10 million in 2006 and two guys that hadn't raised any Venture money made pretty Serious Coin but didn't realize promise"—watching from distance explains re-engagement. "Firm believer that when you have instant buyer that usually is sign that should be instant investor not instant buyer, don't sell too soon." The Condé Nast stagnation at 04:54 quantifies legacy thinking cost: "old school publisher bought them with lot of old school ideas, wasn't lot of innovation no surprise there"—took until spin out to get Series B, "nine years after birth" versus typical 2-3 year trajectory. "Legacy companies bring Legacy thinking, do not get handcuffed long term." The Wall Street Bets awakening at 09:14 reveals hiding in plain sight: raised "$800 million over 16 years, now number 18 website by traffic in world, number seven in United States"—Bill Gurley "sat down with one of his kids and say take me through your use pattern, shows how far under radar they ran because first chapter just part of Condé Nast." Strategic lesson: selling to strategic acquirer year one for modest millions versus raising venture capital creates decade-long stagnation under legacy corporate thinking—founders watching from distance eventually returned to realize original vision once venture-backed spinout occurred. 5 Key Timestamps: [02:17] The $10M One-Year Sale Mistake – Sold Reddit "less than one year old give or take for $10 million to Condé Nast"—"damn small amount, they sold too soon in my opinion" [04:54] The Legacy Media Stagnation Period – "Old school publisher bought them with lot of old school ideas, wasn't lot of innovation"—"tough place to work, corporately bureaucratic, weren't going so fast, weren't really innovating" [05:28] The 9-Year Series B Silicon Valley Elite – "Nine years after birth of company" finally got "$50 million Series B"—investors included "Ron Conway Mark Andreessen Snoop Peter Thiel Y Combinator Sam Altman, Silicon Valley Elite who knew exactly what talking about" [08:36] The 12-Year Unicorn Journey – Series C 2017 "$1.8 billion valuation, Reddit after all these years in Unicorn club"—"took 12 years to cross billion dollars in valuation, damn they finally did it" [13:59] The Instant Buyer Investor Principle – "$10 million in 2006, made pretty Serious Coin but didn't realize promise, watching from distance explains why got re-engaged"—"firm believer when you have instant buyer that usually sign should be instant investor not instant buyer"
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