Discord officials have not confirmed the date of Discord IPO but there are signals that a listing on either NYSE or Nasdaq may happen by the end of 2024. It isn’t easy to ascertain the post-listing value of the Company, but it will surpass the most recent valuation of $15 billion. In March 2022, the Company also started official communication with banks for direct listing.
The Company has hired Leslie Kilgore (Netflix Executive) and Block (Formerly Square) CFO Amirta Ahuja to its board of directors. Both have experience with public limited companies previously. Investors are taking it as a sign of pending listing. However, this article will overview a descriptive detail about the Discord IPO.
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Discord IPO – An intro
Discord is a software company based in San Francisco and offers app-based services on instant messaging, video calls, and text messages, mainly for the gaming market. The company is expected to go public on either the NYSE or the NASDAQ during an Initial Public Offering (IPO). No one on Wall Street is waiting with bated breath for the IPO, even though no date has been officially announced.
Previous fundraising stats of the Company:
Citron established Discord for which he secured $20 million in 2016. By 2017, the Company had secured $50 million in fundraising through Index ventures, with 45 million users at that point. In the next round, the Company raised $150 million at the end of 2018, and the Company had 200 million active users at that time.
From 2020 to 2021, the Company raised an additional $700 million, bringing total funding to more than $982 million with more than 450 employees. The company`s revenue in 2020 was $130 Million compared to the $45 million in the preceding year.
How much is the Discord Worth?
Discord’s worth is $15 billion as of its fundraising round on September 2,021, which raised $500 million. Previously, the Company received a valuation of $7 billion in December 2020.
Critical Data of the Company:
Company founded in | 2015 |
Expected date | 2024-2025 |
Total revenue (2022) | $220 million |
Total funds raised | $995 million |
Number of employees | 3,000+ |
Headquarter | San Francisco, California |
Overview:
- Business analysts anticipate Discord IPO in 2024-2025.
- The Company will be listed on the Nasdaq Exchange or NYSE
- The Company rejected Microsoft’s acquisition offer in 2021 worth $10-$12 Billion.
- The fastest-growing private Company is currently valued at $15 billion.
How does the Discord Make Money?
Business revenue is primarily generated through subscription packages. The paid offer Nitro charges $9.99 per month, allowing users to access exclusive features such as global emoji use, enhanced streaming capabilities, screen sharing feature, increased upload limit, and much more. The Company also offers cheaper packages with limited features.
Discord also makes money by selling features other than subscriptions, selling products, and generating revenue from selling games through the platform. Discord IPO is also a great initiative for the company to boost its earnings in the coming years.
Is the Company profitable?
Presently, there is no evidence supporting the fact that the Company is profitable. If the Company diverts its business strategy, adds additional revenue streams in the future, and increases users. It will increase the revenue of the Company, and subsequently, it will generate profits.
Who owns the Company?
The Company is owned by founders Citron and Vishnevskiy, along with investment institutions such as Greenoaks Capital, Index Ventures, and Spark Capital.
How do you trade shares of a company?
After listing the Company, you can trade the Company’s shares like any other publically traded company on the stock market.
- Open the account or log in
- Search for the Company you want to trade in
- Choose a position, size, stop, and limit levels
- Place and trade
How to Invest in Discord IPO?
Several options are available if you want to purchase the Discord IPO. These options are stated below:
Investing in publically traded companies that own the stock of Discord:
- Sony – Sony is a Japanese tech giant known for manufacturing consumer electronic products. In 2021, Sony was one of the leading investors in the fundraising round.
- Tencent – Tencent is a Chinese multinational company that offers a huge range of technology and internet-related products. Tencent participated in fundraising and invested $150 million back in 2018.
Investing in Ark Venture Fund:
ARK Venture Fund enables retail investors to invest in private companies that are conventionally accessible to institutional investors. For this, you can purchase shares of ARK Venture Fund via Titan Investing App. The minimum investment Cap is $500. Fund’s portfolio comprises public and private tech companies.
As options to invest for retail investors are limited. But through these options, you can gain exposure to the Company. However, its drawback is that the price performance of Discord IPO is separate from Discord’s performance.
Options for Accredited Investors:
These investors have more options to invest in the Company than retail investors. These options are stated below:
Direct Investment:
It is based on directly negotiating with the Company or its existing shareholders to finalize a significant deal. Sony is an example.
Private Equity Funds:
Like ARK Venture Funds, these companies collect money from multiple investors and use these funds to invest in private limited companies.
VC Funds:
These funds are developed like private equity funds, but their primary focus is to invest in startups at an early stage. Commonly, these funds are used to invest in pre-IPO Companies.
Equity Crowdfunding:
Some platforms enable qualified investors to invest in startups and other private companies through crowdfunding. These platforms consist of AngelList, SeedInvest, and CircleUP.
Secondary Markets:
These platforms allow the trading of pre-IPO shares. Initial investors or employees want to sell shares before the Company goes public. These platforms include Forge Global, NASDAQ Private Market, and EquityZen.
Future Prospects:
Per market conditions and rumors, the most awaited development seems to occur from 2024 to 2025. The following factors are accelerating the expected Discord IPO:
- Company’s ability to generate profits and add new revenue-generating features without affecting the customer experience.
- The Company’s management and CEO, Jason Citron, are focused on a listing of the Company.
- Market expectations of high growth of tech companies and macro market situation.
Conclusion:
Discord IPO is going to tackle the investors into another end performance. Experts believe that it will be one of the exceptional and fastest growing initiatives by the parent company Discord. This will also help the company to increase its stocks and market those in its own way. In simple, this is better for both investors and the company – the collective approach may lead the world to finance in the coming years. I hope that this guide will be helpful for you.