Reddit Co-Founder Alexis Ohanian Displeased on IPO Day Amidst Feud with Initialized Capital

On the milestone day when Reddit (NYSE:RDDT) went public, a dispute erupted between the social media giant's co-founder, Alexis Ohanian, and its early investors, overshadowing the celebrations typically associated with a company's initial public offering (IPO).

Unprecedented Tensions Surface on IPO Day

Contrary to customary celebrations on IPO days, Ohanian chose to voice his dissatisfaction on the social media platform X, previously known as Twitter. He criticized Initialized Capital, a venture capital firm he co-founded with Garry Tan, for failing to acknowledge him in their celebratory message about Reddit's milestone, which only mentioned Reddit CEO Steve Huffman and his team.

Ohanian described the omission as 'petty' by calling out Tan and Initialized managing partners directly. Initialized Capital has a portfolio that includes other significant startups like Instacart, Rippling, and Coinbase. In 2020, Ohanian departed Initialized to create his venture capital firm, 776, which primarily focuses on early-stage crypto startups.

The omission by Initialized Capital was noteworthy, with one user, Harry Hurst, suggesting that not recognizing founders is a significant negative indicator in the venture capital industry.

Reddit's IPO Amongst Public Dispute

Despite the spat, Reddit's IPO was hailed as a success. The company initially set its share price at $34, opening at $47 on the New York Stock Exchange. Currently, the stock trades at approximately $55, marking a significant gain from its IPO pricing.

The company's IPO prompted speculation from analysts such as Wedbush's Dan Ives, who deemed it a potential pivotal moment for the tech industry and forecasted Reddit could reach $1 billion in revenue in the following year.

However, the IPO was not without its issues, as a patent dispute with Nokia loomed, though yet unresolved at the time of the Reddit IPO.

Reddit, IPO, Dispute