Universal Venture Capital’s Post

As Reddit prepares for its listing on the New York Stock Exchange with a valuation of up to $6.4 billion, significantly lower than its $10 billion valuation in 2021, the tech industry is observing a new trend of 'down round' IPOs. The unprecedented $345 billion influx into US ventures in 2021, driven by low interest rates, is now leading to a more pragmatic outlook as startups face dwindling funds. Venky Ganesan of Menlo Ventures aptly summarises the prevailing sentiment by stating, "Down is the new up." While this period of adjustment may pose challenges, it is an essential step towards ensuring the long-term health and sustainability of the industry. #VentureCapital #TechIndustry #IPO #StartupValuation #SiliconValley

In a notable analysis on Reddit, Inc.'s forthcoming #IPO, Ross David Carmel, Esq., Partner, delves into the complexities and expectations surrounding the event. His insights, featured in this Law360 article, shed light on the shifting landscape of tech IPOs, particularly addressing the cautious investor sentiment reflected in Reddit's valuation adjustments. Carmel's expertise highlights the broader implications for venture-backed technology startups navigating post-boom market realities, making this an insightful piece for anyone interested in the dynamics of initial public offerings and the evolving tech sector. Discover the full article for a comprehensive understanding of what to watch in Reddit's anticipated IPO.   https://lnkd.in/eq5CyHzQ   #srfc Sichenzia Ross Ference Carmel LLP

Yesterday Reddit, Inc. was removed from the NYSE® OPEN Venture Capital Unicorn® Index. During its time as a constituent Reddit has increased in value by 233% since its addition to the index at its inception in March 2021. Meanwhile the S&P500 is up 46% over this period. Reddit is a strong example of the significant returns available in late stage venture capital and pre-IPO companies. Congratulations to the Reddit team for this phenomenal growth 👏. Reddit was removed from the index due to it being 6 months post its public listing on the NYSE as NYSE: RDDT. The Index tracks private VC backed companies. #Reddit #IPO #NYSE #VentureCapital #UnicornCompanies #LateStageVC #PreIPO #InvestmentReturns #StockMarket #SP500 #PublicListing #TechCompanies #CapitalMarkets #MarketGrowth #Finance #Investing #FinancialMarkets #GrowthInvesting #unicorn

Juicy article by Tabby Kinder on the Valley's VC industry reality check, after the 2021 low-interest rates had investors dumping money on companies left and right. Some quotes: "Despite the combined nearly $35bn write-off of supposed shareholder value, these “down round” IPOs are not being met with derision in Silicon Valley. Instead, they are a signal that rationality is slowly returning to venture capital. Down round IPOs “are not only going to become common, they will become the standard for the class of 2021”, says Venky Ganesan, a partner at Menlo Ventures. He is referring to a group of late-stage companies whose valuations soared that year as investors, punch drunk on low interest rates, poured in astronomical sums." (…) "The looming crunch also highlights the cost of the herd mentality in the venture capital industry, which has become comfortably used to mostly moving en masse and in the same direction. The rush erodes discipline." (…) "If Silicon Valley is moving through the stages of grief from denial and anger to acceptance, that might be a healthy thing in the long-run." Read it all in the link.

The Reddit IPO could make waves on Wall Street this week. But even if it pops, don't expect the debut to lead to another parade of unicorn filings just yet. Experts noted that Reddit's revenue growth is slowing and it is still not profitable. So gains could be short-lived. And many investors are waiting for even bigger startups like Chime, Stripe and Databricks to file for their IPOs. My latest for Barron's. #reddit #ipos #unicorns #initialpublicoffering #startups #stocks https://lnkd.in/eQP9-fXS

🚀💸 North American venture vibes: Q1 2024 hit us with $35.2B in funding, per [Crunchbase](https://lnkd.in/gvjNJ6rR). That's a spicy 14% jump from the last quarter! But, plot twist 🔄, it’s a 27% dip year-over-year. Deal count? Also took a hit, down 8% from last quarter and a whopping 34% from last year. And let's talk seed-stage blues — the cash pool shrunk to $3B from the usual $3.5-$3.6B range, with fewer deals making the cut. Oof, what a rollercoaster! 🎢💔 #VentureCapital #StartupLife

Simple and perfect deck. I remember when I used to present at investor pitches, they would ask us to halt so they read themselves or ask us to turn a specific slide If Problem Statement and then the solution. If it is perfects would ask more on Value proportions and Revenue streams Else there might be feedback or some random talks between the jury and they say something, and it goes away.

Do you know how Reddit, Inc. survived?  Despite being valued at $6.4 billion in 2024, Reddit's journey has not always been smooth. In fact, it took 12 years for the company to reach a valuation of $1.8 billion in 2017.  Interestingly, at the very beginning of Reddit, Inc.'s journey, its founders created many fake accounts to make the site appear more active and popular than it actually was. This was a risky move, but it ultimately helped the company gain traction and survive.  This goes to show that sometimes, taking bold and unconventional steps can be the key to success.  What risks have you taken in your own career or business? Share your thoughts in the comments below.  #ProductManager #Reddit #Business #Startup

"VC shots fired." Kerfuffles are rare in Venture Capital, a traditionally quiet industry. This evolving #Reddit story makes it all the more intriguing. The company went public yesterday, and as usual, anyone involved with it since 2005 posted on X in (self?)-congratulatory messages. One post stood out. Initialized Capital, one of Reddit's VCs, congratulated only one of the two co-Founders, Steve Huffman. The other co-Founder, Alexis Ohanian Sr., who's acted as the face of the company and is credited with building its community, shared his surprise in an X post that's gathered over one million views so far (see image below). It felt like a knife in the back: Ohanian co-founded Initialized Capital and brought the Reddit opportunity to the fund. Most of the press has downplayed Ohanian's role in the company's development, which led to a $6 billion valuation. Reddit's story is complicated. The more I look into it, the more fascinating it is from an entrepreneurship and VC standpoint. ▶️ I started writing an article about it. If you have more info on the co-Founder and VC relationship, please share. More context and follow-ups below. 👇

So the Fed just cut rates. As a startup founder, here's my take on what's next. Spoiler: It's not all sunshine and rainbows. 1. No instant party like it's 2021 🎉🚫 VCs got a ZIRP (Zero Interest Rate Policy) hangover and sobered up. Capital will get cheaper, but don't expect money to rain from the sky. Your fundamentals still need to shine. 2. Talent war is brewing ⚔️ Well-funded startups and big tech are warming up their hiring engines. If you that rockstar engineer, you’d better move fast. 3. Capital-efficient growth is still king 👑 Lower rates ≠ Burning cash for fun. Take a page from Notion (Got to a $10B valuation with just $50M raised) and Zapier ($140M ARR before VC). While "grow at all costs" may give you short-term wins, more founders and investors are recognizing the long-term advantages of capital-efficient scaling. My two cents: If you have 18+ months of runway, hold off on fundraising for 3-6 months to see if terms improve; if not, start raising now before competition intensifies.