“Secondary Data Suggests Reddit’s Public Debut at $5B”
![Reddit Ipo V3](https://techgroundnews.com/wp-content/uploads/sites/4/2024/02/reddit-ipo-v3-768x432.jpg)
If Reddit prices too high out the gate, it loses out on potential buyer interest and could trade down from its IPO valuation instead of building momentum.
Reddit’s most recent primary round in 2021 raised $410 million at a $10 billion valuation from investors, including Fidelity, Quiet Capital and Montauk Ventures, among others.
The market has obviously changed since then, and going out at that $10 billion valuation wouldn’t be smart.
What happens nextThe $5 billion valuation that Reddit may pursue is not risk-free.
Reddit offering shares to its top users is likely a ploy to avoid the stock entering meme-trading territory, Martin said.