Reddit Is Valued at Almost $2 Billion After its Latest Funding
Jul 31, 2017. Tom Huddleston Jr.
Online discussion forum Reddit has landed its largest funding round ever as it expands its ad business to generate more revenue from a growing user base.The 12-year-old company, which calls itself "the front page of the internet" and boasts more than 300 million monthly users, has raised an additional $200 million in venture capital funding that gives Reddit a valuation of nearly $1.8 billion.
The funding comes from a group led by Andreessen Horowitz and Sequoia Capital, along with investment firm Vy Capital, Fidelity, and individual investors such as Y Combinator president Sam Altman and SV Angel founder Ron Conway.
http://fortune.com/2017/07/31/reddit-200-million-funding/
Reddit reported $8.3 Million of revenue in 2015. It donated 10% of revenue to charity.
Reddit reported a target of $35 Million for revenue in 2016. Generally believed that Reddit missed their 2016 target and only achieved $20 Million of revenue in 2016. Reddit has been working to attract large scale advertisers to the site, to generate advertising revenue. Advertising revenue is the typical approach to monetizing a social media site (e.g. Facebook, etc).
Reddit had 48 million U.S. unique monthly visitors in May 2017, which made it the 64th most popular website in the States, according to comScore. Globally, Reddit claims to have some 300 million monthly users.
Comparing Reddit to Steemit for some high level statistics:
Monthly global users Reddit: est. 300 million Steemit: est. 1 million (EOY2017)
$$ in bank to build site Reddit: $200 million fiat Steemit: est. $108 Million SP
Number of employees Reddit: est. 70 employees Steemit: unknown. Maybe 10?
2017 ad revenue Reddit: est. $30M to $50M Steemit: est. $0
Site traffic US rank Reddit: 64 Steemit: 1300
Current valuation Reddit: est. $1.8 Billion Steemit: est. $340 Million
For STEEM to be worth $10, it has to grow by 8X.
That would value steemit at $2.4 Billion.
Compared to reddit which is currently valued at $1.8 Billion.
Can STEEM get to $10? ABSOLUTELY !!!
Is it likely that STEEM gets to $10 in 2017. Not in my opinion. Not unless BTC goes to $25K per BTC, and pulls STEEM along for the ride.
Could steemit be at 300 million global users by 2020 and generating $50M from advertising revenue by then?
Yes - that could happen. With excellent management !!
If steemit gets to 300 million global users and is generating $50M annual revenue, then STEEM at $10 would be virtually guaranteed. I suggest you want to stick around for the journey. Not many other places where you can get an 8X multiple on your investment in just three short years.
But DaveB, you are being such a pessimist again !! You need to get on the bandwagon and be a cheerleader for STEEM price going to $10 in the next two months, and then $20 and $100 immediately after that.
My opinion, that is pump and dump BS. Unrealistic Ponzi scheme hocum that isn't going to be helpful to steemit in the long term. We don't need a lot of "lets get rich quick" folks on the site, here for a good time, not for a long time.
Please enjoy the Canadian classic below. Trooper. 1977. "We're Here For A Good Time (Not A Long Time)"
http://www.azlyrics.com/lyrics/trooper/werehereforagoodtimenotalongtime.html
Please upvote or resteem if the article made you stop and think for a few seconds.
STEEM On!!
DaveB
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