Outside investors – people who gave money in exchange for ownership of the company and its IP. They’re received about 1.3 billion dollars in five or six rounds of funding from external investors. Reddit’s motivation to IPO is to pay off those investors and restructure ownership of the company.
Oh, so reddit isn’t really a capitalist thing where it’s competition making it better? It’s more like it just found the right people to beg from, but they want paid back?
They’ve been loosing money for 20 years, now they want the IPO so they need to show that they can also make money.
If they’re losing so much money then why do they have 2000 employees?
Yeah weird where are they getting money?
Outside investors – people who gave money in exchange for ownership of the company and its IP. They’re received about 1.3 billion dollars in five or six rounds of funding from external investors. Reddit’s motivation to IPO is to pay off those investors and restructure ownership of the company.
Oh, so reddit isn’t really a capitalist thing where it’s competition making it better? It’s more like it just found the right people to beg from, but they want paid back?
Yes, that’s how a lot of tech companies work in late-stage capitalism. It’s more about stock prices than “begging” though.
Capitalism
Yup. Investors want free value. They want more than they paid, and unprofitable businesses don’t tend to offer that.
They need to at least look profitable for the short period of time before the IPO, and insinuate that they’ll continue to be after.