Re:Reddit raises $410M in new funding
by dcolkitt on Thursday August 12, 2021 @11:13AM
(#28157334)
The biggest problem is that their revenue per user is atrociously low compared to other social platforms. That money should be thrown at poaching as much ads talent as possible from Facebook or Twitter.
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The problem is that throwing money rarely leads to the outcome desired.
I would know how to run a high-quality reddit on $5M/year, and perhaps as much as $20M. I would not know how to run a high-quality reddit on $100M/year.
The term is 'overcapitalized.'
At some scale, people focus on climbing corporate ladders over the core business, on pet projects, and communications becomes a bottleneck (and the number of potential links grows as a square law with the number of people).
The right scale depends on the complexity of the product. A car requires an army to engineer and produce.
Reddit? That benefits from a small team, where people can holistically understand the whole system, and everyone involved. That's at most 20 SWEs.