Reddit may be targeting a $5 billion valuation for its upcoming IPO

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Steve Huffman, co-founder and CEO of Reddit. Reddit is reportedly targeting a valuation in the single-digit billions.Zach Gibson/Getty Images

  • Reddit is eyeing an IPO as early as the first quarter of 2024.

  • Bloomberg reported that potential investors advise the company to target a valuation of at least $5 billion.

  • Investors hope that the IPO market will be more active in 2024.

Excitement is building for one more IPOs expected in 2024.

Potential investors advise social media platform Reddit to target a valuation of more than $5 billion, as it prepares to go public as soon as March, Bloomberg mentioned, Quoting sources familiar with the matter.

The success of an IPO depends in part on the state of the IPO market, which has suffered in recent years. Bloomberg reports that Reddit’s valuation is estimated at less than $5 billion on private markets. When Reddit began preparing to go public for the first time in late 2021 – A Record year for venture capital – Some believe the company could be valued at $15 billion in an IPO.

Investors hope so 2024 will be a more active year For the IPO market. IPOs started showing signs of life again last year, as profitable tech startups like Instacart and Klaviyo filed to go public. The IPO market this year may also benefit from the Federal Reserve’s promised interest rate cuts and a weak M&A market. The last time a social media company went public was in 2019. That was Pinterest, and it was valued at $10 billion.

Reddit’s current goal shows that those days of high ratings are over for now. Reddit declined Business Insider’s request for further comment.

Reddit, which some have called “The front page of the Internet” It was launched in 2005 by University of Virginia roommates Steve Huffman, Alexis Ohanian, and Aaron Swartz.

A year later, it became one of the largest sites in the world in terms of unique visitors. So the founders He sold it to Condé Nast For only 10 million dollars. Ohanian went on to launch venture capital firms Initialized Capital and SevenSevenSix, but Hoffman has remained close to the company and has been CEO since 2015 — seeing it through. Explosive growth period During the pandemic, that’s when the meme craze was born.

However, even Huffman is shocked at how far Reddit has come Since its launch. He once said that work felt like “homework that got out of hand.”

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