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Reddit Confidentially Files For IPO

Reddit made another step towards going public. The social media giant announced filing a confidential draft statement for a planned IPO this Wednesday.

The company filed a draft registration statement with the U.S. Securities and Exchange Commission (SEC). The registration statement uses SEC Form S-1. Public companies in the US use the form to register new securities. The SEC requires this form and doesn’t allow stock listing on the national exchange without it.

Usually, companies submit the S-1 Form before their initial public offering (IPO). The form requires companies to list critical information about their business. This includes the current business model and competition, planned use of capital proceeds, and a security plan.

This announcement does not come as a surprise. In September, reports showed that Reddit was hiring investment bankers and lawyers to prepare for its IPO.

The company did not yet determine the number of shares it will offer in the IPO. It also didn’t disclose the price range. Before the IPO can occur, the SEC needs to approve the filing.

We are in a quiet period, and for regulatory reasons, we cannot say anything further.

However, reports show that the company may be aiming for a $15 billion valuation. Moreover, a recent Series F funding, which raised $700 million, is valued at $10 billion. Fidelity Management was the largest investor.

Expansion and scaling – with crypto

This year was big for Reddit. The company earned $100 million in revenue from advertising alone in August.

This January, the company also upped its investment into the blockchain. Reddit partnered with the Ethereum Foundation to launch its Community Points system on Ethereum.

Reddit said that it launched its community points because it wanted to give more ownership back to users.

The platform has long maintained a decentralized ethos by empowering users to create, govern, and grow their own communities.

The partnership should accelerate scaling and developing the tech needed to launch Community Points on Ethereum. This work will also involve Reddit’s dev team. They also stated that they would make the tech open source.

The scaling technology developed through this partnership will be open-sourced and publicly available for anyone to use.

The idea behind the project is for users to reward quality posts and each other with community points. In turn, users can redeem these points for badges and other features—currently, Ethereum’s Rinkeby test net stores community points as ERC-20 tokens.

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Reddit currently has 52 million daily users. In line with its decentralized ethos, it wants to introduce these users to the blockchain.

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