Fidelity has further reduced the estimated value of its holdings in Reddit, Discord, and SaaS startup Gupshup, providing a glimpse into how the public market slowdown affects privately held startups.
According to its monthly statement released Friday, Fidelity Blue Chip Growth Fund valued its Reddit assets at $15.4 million as of May 31. That’s down 7.36% from $16.6 million at April’s closing and 45.4% since its investment in August 2021. Reddit’s share price reflects a $5.5 billion valuation.
Fidelity wrote down its Discord stake to $1.7 million, down 13.4% from a month ago and 47% from the initial $3.3 million investment. (Note that Fidelity mostly marked down Reddit and Discord holdings last year.)
Reddit, facing a revolt from administrators of certain prominent subreddits over API cost adjustments, was valued at $10 billion when it raised money in August 2021. In September 2021, Discord raised $15 billion.
The financial giant adjusted its Twitter position to $6.86 million, up from $6.55 million a month earlier but still down 65% from the initial investment. It cut its stake in SaaS business Gupshup to $10.15 million, down from $11 million at April’s closing and 38% since the first investment.