While initial public offerings (IPOs) typically mark moments of celebration, Reddit’s big day was overshadowed by a public spat between its co-founder and early investors on social media.

Ohanian’s Grievance

Alexis Ohanian, Reddit’s co-founder alongside Steve Huffman in 2005, took to social media to express his discontent with Initialized Capital, a venture capital (VC) firm he co-founded with Garry Tan from Y Combinator. Ohanian criticized Initialized Capital for failing to acknowledge him by name in their congratulatory post about Reddit’s IPO.

Initialized Capital’s Post

In its post on social media, Initialized Capital congratulated Reddit’s debut on the New York Stock Exchange (NYSE), acknowledging Steve Huffman and the team. However, Ohanian felt overlooked as his name was omitted from the message.

Ohanian’s Response

In response, Ohanian quoted Initialized Capital’s post and tagged Garry Tan, Brett Gibson, and Jen Wolf, the managing partners at Initialized Capital. He called out the investors for what he perceived as a petty gesture, highlighting their failure to mention him by name.

Background on Initialized Capital

Ohanian and Tan established Initialized in 2011, focusing on seed investing. The firm has supported startups like Instacart, Rippling, and Coinbase, including Reddit in its Series A funding round in 2012. Ohanian departed Initialized in 2020 to launch 776, a VC firm primarily investing in early-stage crypto startups.

Reddit’s IPO Journey

Rumors of Reddit’s IPO emerged in early 2022, with the company confidentially filing for an initial IPO. However, market volatility delayed its plans. Despite the setback, Reddit’s NYSE debut was successful, with shares priced at $34 and opening at $47.

Congratulatory Messages

While Tan did congratulate Reddit on its IPO, Ohanian’s grievance with Initialized Capital remained unresolved. Tan’s acknowledgment of Ohanian and Huffman’s efforts in building Reddit was appreciated, but Ohanian sought clarification regarding Initialized Capital’s omission.

The dispute between Ohanian and Initialized Capital underscores the tensions that can arise even on a day meant for celebration.