Sequoia Capital’s Post

Reddit, Inc. is one of the largest and most culturally influential sites on the internet—and its journey is one of the most unusual company stories in internet history. Hear the story of the front page of the internet on Crucible Moments, available now.

Reddit, Inc. co-founders Steve Huffman and Alexis Ohanian Sr. launched the platform in 2005 as part of Y Combinator’s first batch, quickly gaining traction as a user-driven content aggregation and discussion site. Through multiple crucible moments—including an acquisition, spin-out, and leadership changes—Reddit evolved from a startup to a public company. Here are key lessons from their journey: ▶ Empower your community, but set boundaries.   Reddit’s success was built on giving users the freedom to create and moderate their own communities through subreddits. However, this decentralized approach led to challenges with toxic content. Finding the right balance between user empowerment and content moderation is crucial for community-driven platforms. ▶ Be willing to change course when necessary. When Steve Huffman returned as CEO in 2015, he recognized that Reddit’s hands-off approach to content was no longer sustainable. Despite fears it would “break” the site, he implemented the first content policy. Sometimes, you must risk short-term backlash to ensure long-term viability. ▶ Founder authority can be crucial during crises. Reddit struggled under non-founder CEOs when facing community backlash. Steve Huffman’s return provided the moral authority to make difficult decisions about the platform’s direction. In times of crisis, founder leadership can provide needed credibility and vision. ▶ You Can’t Please Everyone. Reddit had users who vehemently disagreed with each other on issues of content safety and moderation. In deciding where to draw the line on its content policy, Reddit was bound to alienate some of its users. CEO Steve Huffman and his team drew the line according to their principles, and accepted the consequences. Ultimately, the large majority of the community approved. ▶ Build for your unique strengths. Rather than copying other social platforms’ advertising models, Reddit developed an approach that leveraged its communities’ interests without compromising user privacy. Tailoring your business strategy to your product’s unique attributes can create a sustainable competitive advantage. ▶ Maintain your core values through growth. Despite pressure to change, Reddit has maintained core principles like user anonymity and allowing diverse content (with restrictions). Staying true to your foundational values can help retain user loyalty through transitions. ▶ Anticipate future business models. While focusing on advertising, Reddit’s leadership recognizes the potential for other revenue streams, such as paid communities. Always think about how your platform’s strengths could translate into new business opportunities. ▶ Be prepared for perpetual evolution. Reddit’s top value is “evolve.” Recognizing that change is constant—in both calm and turbulent times—helps build resilience and adaptability into your company culture.

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In 2005, founders Steve Huffman and Alexis Ohanian Sr. launched Reddit, Inc. Today, the “front page of the internet” is one of the most important sites for communities on the web—and its journey is one of the most unusual company stories in internet history.

The Reddit, Inc. story is one of a kind: * Startup to sale in ~1 year * Spin-out once again, outgrowing their parent company  * Community so powerful it catalyzed leadership change  * Founders leaving and returning years later to a company in crisis. * Growing more than 50-fold to an IPO 19 years in the making Here’s what Reddit looked like 5 minutes after Steve Huffman and Alexis Ohanian Sr. launched it. Hear the whole story from Steve Huffman, Alexis Ohanian, CTO Chris Slowe, and COO Jen L. Wong on a new episode of Crucible Moments, available now.

Tomorrow, tune into Crucible Moments to hear about the making (and remaking) of the front page of the internet ft Reddit, Inc. founders Steve Huffman, Alexis Ohanian Sr., CTO and founding engineer Chris Slowe, COO Jen L. Wong, and Sequoia’s Alfred Lin.