Discord has become one of the most popular communication platforms for gamers and communities alike. It has over 154 million monthly active users - that’s like half the population of the United States using Discord every month. In 2021, Discord turned down a $12 billion acquisition offer and instead raised $500m new financing at a $15 billion valuation.
Whilst Discord is not publicly listed on any stock exchange, you can still invest in Discord stock. In this comprehensive guide, we will discuss everything you need to know about buying Discord stock, including understanding its business, why to invest and why not to invest, and from which platforms you can buy Discord stock.
Understanding Discord and Its Business Model
Discord is a communication platform that allows users to communicate through voice, video, and text. The platform was launched in 2015 and has since grown rapidly, from 10 million monthly active users in 2017 to over 150 million in 2023. Discord was developed for the gaming community but has become widely used in non-gaming communities. Users send 850 million messages every day and 25 billion messages every month.
Discord's business model is based on generating revenue from Nitro subscriptions, which offer premium features to users, and from partnerships with game developers. Discord’s revenue has grown even faster than its user base, from $45 million in 2019 to $300 million in 2021.
Why Invest in Discord?
Discord's growth and popularity make it an attractive investment opportunity. Here are the highlights:
Discord is the industry leader with a strong user base, and a revenue model built on recurring subscriptions, which provides a steady stream of income. Revenue has grown rapidly in recent years and the company has announced plans to monetize through advertising, which could significantly boost revenue.
Discord has also partnered with major game developers, such as Riot Games, to integrate their games into the platform, which increases engagement and revenue.
Discord is attractive acquisition target and may IPO soon. Discord rejected an acquisition offer from Microsoft for $12 billion in 2021 and also had acquisition offers from Amazon and Twitter. After turning down Microsoft, Discord announced it was exploring going public instead.
Why Not Invest in Discord?
As with any investment, there are risks involved in investing in Discord stock. Here are a few things to keep in mind:
Whilst Discord’s revenues increased almost 7x from 2019 to 2021, it’s not known whether Discord is profitable.
The company is heavily dependent on its Nitro subscription model, which may be impacted by changes in user behavior or competition.
Discord may face challenges from new competitors that develop a platform with Discord’s functionality, or a competitor that offers communication tools such as Slack or Microsoft Teams, may target Discord's users.
How to Buy Discord Stock
Now that you understand the potential of investing in Discord, let's discuss how to buy Discord stock. Discord is a privately held company, which means its shares are not freely available with brokerage accounts. Here are the two options:
1. Invest through pre-IPO platforms
Tokenfolio is a pre-IPO marketplace where you can invest in Discord stock. There are two key advantages over other platforms. First, Tokenfolio offers reasonable minimum investments, starting from $1,000. Second, once shares are purchased, they offer markets to re-sell shares. This means you don't have to wait for companies like Discord to go public in an IPO before you can sell part or all of your holding; and there are more opportunities to invest.
Forge Global is one of the largest pre-IPO marketplaces. Forge has a minimum investment of $100,000 and fees for using their services can be steep. There is also no guarantee that shares are available.
EquityZen is another pre-IPO marketplace. Similar to Forge, EquityZen has high minimum investments and fees, although on certain stocks they offer reduced minimum investment of $10,000 for your first investment.
2. Wait for the IPO
After rejecting Microsoft’s $12 billion acquisition offer, Discord stated that it was aiming to go public via an IPO. However, Discord has not yet officially announced a date for the IPO. If Discord does IPO, you can buy shares via major brokerage platforms. You likely won’t get the same price at IPO as on pre-IPO platforms.
Who Owns Discord?
Discord is owned by its founders and high-profile investors. It has many notable backers, including Tencent Holdings, Benchmark, Index Ventures, Fidelity Investments and Greylock Partners. Discord has raised a total of $1 billion from investors.
Discord Stock Price
Discord has raised money at increasing valuations, with its share price increasing almost 15x from $37 per share in 2017 to $550 per share in 2021.
Year (round) | Share Price | Valuation | Funds Raised (cumulative) |
2017 (Series B) | $37 | $0.8B | $103M |
2018 (Series C) | $76 | $1.7B | $153M |
2019 (Series D) | $87 | $2B | $303M |
2020 (Series E) | $144 | $3.5B | $405M |
2020 (Series F) | $280 | $7B | $505M |
2021 (Series G) | $550 | $15B | $1B |
What is Discord Stock Symbol?
Discord does not have a stock symbol at the moment. The Discord stock symbol will be announced when the company files papers for an IPO.
Key Takeaways
Discord is a fast-growing communication platform with over 150 million users. It is not currently publicly traded, so you can only invest on pre-IPO platforms. If you want to invest in Discord stock, Tokenfolio is the best option as it offers reasonable minimum investments and flexibility to sell shares without needing to wait for the IPO.