Hottest Tech IPOs to watch.


San Francisco, California, United States

Industry: Social media

Region: US 🇺🇸

Founded: 2015

Expected Valuation: $15 billion

IPO Date: 2023 (expected)

Discord Financial, Inc.

Key Company Facts

| | | | ----------------------------- | ----------------------------------- | ------ | | Founded | 2015 | | Headquarters | San Francisco, US | | Sector | Technology | | Industry | Social Media | | Founders | Jason Citron, Stanislav Vishnevskiy | | Number of employees | 1000+ (LinkedIn May 2023) | | IPO Date | 2023 (expected) | | Number of investors | 54 | *** | | Total funding | $2.3 billion USD | *** | | Number of account holders | 12,000,000 | *** | | Valuation estimate | $15 billion USD (2022) |

Company Overview & History

Discord is a social media platform founded in 2015 that provides communication and community-building tools primarily targeted at gamers. It offers voice, video, and text communication features, allowing users to create servers and join various communities based on their interests.

Discord has gained popularity among gamers and other communities for its user-friendly interface and reliable communication infrastructure.

Financial Performance

Funding and Valuation: Discord has raised significant funding from multiple investment rounds. As of its latest funding round in December 2021, Discord raised $500 million, valuing the company at approximately $15 billion.

Revenue Streams: Discord generates revenue through its Nitro subscription service, which provides additional features and benefits to users, including higher-quality streaming, custom emojis, and enhanced server customization options.

The platform also partners with game developers and publishers to offer exclusive content and promotions.


YearRevenue (USD)
2022$445 million
2021$200 million
2020$130 million
2019$45 million
2018$30 million
2017$10 million
2016$5 million

Business Model **

Discord primarily operates on a freemium business model, offering its core communication and community platform for free to users. Users can create accounts, join servers, engage in text and voice chats, and access various features without any cost. This approach has been instrumental in attracting a large user base and fostering a vibrant community ecosystem.

To generate revenue, Discord offers a subscription service called Nitro. Nitro provides users with enhanced features such as higher-quality screen sharing, custom emojis, animated avatars, increased file upload limits, and a profile badge. Users can opt for either Nitro Classic or Nitro, each offering different sets of features at different price points.

In addition to Nitro subscriptions, Discord explores partnerships and collaborations as part of its business model. The platform has teamed up with game developers and publishers to offer exclusive content, game integrations, and promotional events.

These partnerships not only enhance the user experience but also create monetization opportunities for Discord through revenue sharing or promotional agreements.

Discord also provides an API (Application Programming Interface) that allows developers to build and integrate their own applications, bots, or services with the Discord platform.

By offering an open API, Discord encourages developers to create custom tools, moderation bots, game integrations, or community management solutions, which further contributes to the platform’s ecosystem and potential revenue generation.

Overall, Discord’s business model relies on a combination of freemium access, subscription-based revenue from Nitro, strategic partnerships, and the growth of its developer ecosystem.

By providing a valuable and engaging communication platform, Discord has been able to attract a large user base while exploring various avenues to monetize its services and foster long-term sustainability.

Estimated Valuation

YearValuation (USD)
2022$10 billion
2021$14.7 billion
2020$3.5 billion

Risk Factors

Some of these risk factors include:

  • Intense competition: The market for communication and community platforms is highly competitive, with established players like Slack and Microsoft Teams, as well as emerging alternatives. Discord must continually innovate and differentiate itself to maintain its market position.
  • Dependence on gaming communities: While Discord has expanded its user base beyond gaming, it still heavily relies on gaming communities. Any decline in the popularity of gaming or a shift in user preferences could impact Discord’s growth and engagement.
  • Monetization challenges: Discord faces the challenge of finding sustainable and effective monetization strategies. While its Nitro subscription service provides a revenue stream, the company needs to balance monetization efforts without alienating its user base or compromising the platform’s user experience.
  • Safety and moderation concerns: Discord has faced challenges related to content moderation and ensuring user safety. The platform has implemented measures to combat harassment, hate speech, and inappropriate content, but effectively managing user-generated content remains a ongoing challenge.
  • Regulatory and legal risks: Discord operates in various jurisdictions and must comply with evolving laws and regulations concerning data privacy, content regulation, and intellectual property. Changes in these regulations or legal challenges could impact Discord’s operations and financial performance.

Market Opportunity

Discord has established itself as a leading communication and community platform, and there are several market opportunities that it can explore to further expand its reach and enhance its offerings.

  • Non-Gaming Communities: While Discord gained popularity primarily within gaming communities, there is a significant opportunity for it to expand into non-gaming niches. Discord can leverage its existing infrastructure and features to cater to various interest-based communities such as music, art, sports, education, or professional networking. By providing tailored features and fostering engagement within these communities, Discord can tap into new user bases and broaden its market presence.
  • Enterprise and Remote Work: Discord initially gained traction in gaming and casual communities, but there is potential to cater to the enterprise and remote work sectors. By incorporating additional collaboration tools, enhancing security features, and integrating with popular productivity suites, Discord can position itself as a viable alternative to platforms like Slack and Microsoft Teams. Targeting remote teams and fostering seamless communication and collaboration can help Discord capture a share of the growing remote work market.
  • Content Creators and Influencers: Discord has already attracted a significant number of content creators, streamers, and online influencers who use the platform to connect with their audiences. Discord can further strengthen its position in this market by introducing features tailored specifically for content creators, such as advanced moderation tools, monetization options, and enhanced community management capabilities. By offering valuable resources and support to content creators, Discord can become a go-to platform for building and engaging with fan communities.
  • International Expansion: While Discord has a global user base, there is an opportunity to expand its presence in specific regions and languages. By localizing the platform, offering language support, and tailoring features to accommodate cultural nuances, Discord can attract and retain users from diverse geographical locations. Focusing on international expansion can help Discord tap into new markets and drive user growth.
  • Partnerships and Integrations: Discord can explore partnerships and integrations with other platforms, services, and game developers to enhance its offering and create a more comprehensive ecosystem. Collaborations with popular streaming platforms, social media networks, or game publishers can provide additional features, cross-platform integrations, and exclusive content offerings to Discord users. Such partnerships can increase user engagement, attract new users, and create mutually beneficial opportunities for growth.


  • Slack
  • Microsoft Teams
  • Telegram
  • Zoom
  • Twitch
  • Guilded