Reddit — Steve Huffman

Reddit — Steve Huffman

Crucible Moments is a podcast series about the inflection points that shaped some of the most important companies of our time.
Reddit 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. Founded by college roommates Steve Huffman and Alexis Ohanian in 2005, Condé Nast acquired it the following year, the founders left, and Condé Nast ultimately spun it back out as an independent company. With Reddit buckling under user discontent in 2015, Huffman returned as CEO to save the company. Over the following nine years, Reddit stabilized and the company’s revenue grew more than 50-fold to a successful IPO 19 years in the making.

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KEY LESSONS

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.

INSIDE THE EPISODE

Steve Huffman and Alexis Ohanian in the early days
Sequoia investment memo
Steve Huffman and Alexis Ohanian in the early days
Steve Huffman and Alexis Ohanian in the early days
Steve Huffman and Alexis Ohanian in the early days
Steve Huffman and Alexis Ohanian in the early days
Reddit 5 minutes after launch
Reddit 5 minutes after launch
Reddit 5 minutes after launch
Reddit 5 minutes after launch
Chris Slowe and Steve Huffman
Reddit sticker
Reddit sticker
Reddit IPO
Reddit IPO

Behind the episode

THE PEOPLE

Steve Huffman
Steve Huffman
Steve Huffman is co-founder and CEO of Reddit. He was also the co-founder of travel booking site Hipmunk.
Alexis Ohanian
Alexis Ohanian
Alexis Ohanian is co-founder and former Executive Chair of Reddit. He is currently founder and General Partner of Seven Seven Six, an early stage VC firm.
Chris Slowe
Chris Slowe
Chris Slow is the CTO and founding engineer at Reddit. He was also Chief Scientist at Hipmunk.
Jen Wong
Jen Wong is the COO of Reddit. Formally she was Chief of Digital and COO at Time Inc. and Chief Business Officer at POPSUGAR.
Alfred Lin
Alfred Lin is a partner at Sequoia on the seed/early team. He sits on the boards of Airbnb, DoorDash, Zipline and more.

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