Reddit Ads might be the most undervalued inventory on the planet right now. According to Reddit's S-1, Reddit Ads drove ~$787M in revenue in 2023 -- $204.8M of which came from only ten advertisers. Rough math says that Reddit's total organic traffic was ~2.2B sessions in 2023, or $0.358 per organic session. Since Jan 1 2024, Reddit's total organic traffic has soared to an (estimated) 580M visits/mo from Google, on-pace for ~6.9B total organic sessions. Context: In 2022, Reddit had ~1.3B organic visits from Google, and earned ~$653M in ad revenue, or about $0.501 in ad revenue per organic sessions driven. So, Reddit is getting more visibility than ever before in organic search, is on-pace to have nearly 3x more traffic in 2024 than it did in 2023, and has seen ad revenues increase a mere 20.52% YoY. The above metrics are crude approximations, but on the side of being conservative -- presumably, a non-insignificant portion of the people coming to Reddit in SERPs are registering for accounts, downloading the app, and/or visiting the site via non-organic channels, which would only serve to increase available ad inventory.
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Sent over 250k emails to institutional investors last week across clients The number one question asked “What’s DPI of the previous funds?” Investors are tired of seeing 5x marks but 0 distributions Sign of the times If you’re trying to raise capital for someone this is a must ask question to determine fit
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*Speaking about a deal with a banker* 🤡: “Great, we’ll send over an LOI by end of week!” 🐲: “Have they received LOIs already? Roughly where have valuations come in at so far?” Don’t be taking shots in the dark when you don’t need to. Dont bid against yourself. Make sure they’re *willing* to tell you.
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Have come to realize raising capital for funds is a game of patience. It lags tremendously. Sure, the feedback from initial emails is somewhat quick but after that, it can be a week for feedback after sending the deck, then calls, due diligence, doc negotiation then funding. Institutional investors are busy. Your clients are busy, they are running multimillion dollar funds. You’re in the dark a lot. The good thing about this business is you can land a moonshot and close $10-20m with one email. But fuck, I hate slow feedback loops.
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Time is apparantly our most valuable Commodity. No it isnt. Freedom is. Without Freedom your time loses its value and is eventually worth nothing at all. Freedom is your most valuable Commodity. It is the number one asset you will ever own! You must protect it at all costs. Even if it requires an extreme response. It is THAT important. Without it there is nothing else.
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Whenever you get the chance to partner with another super high quality investor on a deal, do it. I’ve heard the “why split the economics” BS over and over in these circumstances. It’s almost beyond doubt that two savvy street smart heads are better than one. It just boils down to the fact that most people in finance do not understand, or truly appreciate that 50% of a big pie is better than 100% of a much smaller pie. This latter point is in fact one of the biggest drivers of the large number of PE firms in the U.S…
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Prospective business buyers: Do a court records search on sellers before you submit your LOI. You can save massive headache in the financing process if you realize that your seller is not above board by doing a quick Google search. I'd love to share stores but can't for client confidentiality purposes, but what I will say is that there are some sellers out there with colorful pasts that I wouldn't want to do business with, and your SBA lender will start asking questions when court case searches and lien searches come back if the seller has a colorful past
