Following its IPO, Reddit's stock price experiences a 30% increase in value, with shares closing up.

• Since its IPO last week, Reddit's stock has been steadily increasing, bringing in approximately $750 million in total funds, with $519 million of that amount logged.
• The IPO market may revive after a slump due to high inflation, poor market responses to 2023 IPOs, and global economic concerns, as investors closely watched Reddit's stock debut.
• Lo Toney, the founding managing partner of Plexo Capital and a Reddit shareholder, stated on CNBC that Reddit's IPO was a positive sign for the tech industry and the future of IPOs.

At the market's close on Monday, the shares had a 30% increase to $59.80.

Since its IPO last week, the social media company's stock has been steadily increasing, bringing in approximately $750 million in total funds, with $519 million of that amount logged.

Reddit's stock price increased by 48% on its first day of trading on the New York Stock Exchange, resulting in millions of dollars in earnings for its moderators and users, known as Redditors. These Redditors, along with corporate insiders and their friends and family members, were able to participate in the company's initial public offering (IPO) through a directed-share program, similar to those offered by tech companies such as Airbnb, Rivian, and Doximity.

Sam Altman, CEO of OpenAI and a former Reddit investor and board member, saw his stake in the company increase from $200 million to over $613 million through the IPO.

The IPO of Reddit, which saw shares skyrocket 72% on the day of its Nasdaq debut, marked the first major social media company to go public since Pinterest in 2019. Investors closely watched the stock debut to determine if the IPO market would rebound after a slump due to factors such as high inflation, poor market responses to several 2023 IPOs, and global economic concerns.

Lo Toney, the founding managing partner of Plexo Capital and a Reddit shareholder, stated on CNBC that Reddit's IPO was a positive sign for the tech industry and the future of IPOs.

""Clearly, the market is indicating a desire for more companies to enter the public markets, as evidenced by the continued strong investor appetite for Reddit during its roadshow," Toney stated."

Toney stated that while there are some startups that have raised a lot of money, they may not be in a rush to go public and raise more funds. He also pointed out that there are other "dynamics that need to happen," such as more companies entering the public market, before it can be said that the IPO floodgates have opened.

Toney stated that while some private market financing may be higher than what the public market is willing to accept as a public company valuation, startups with high private valuations may still have concerns about going public at a lower valuation.

In 2021, Reddit was valued at $10 billion in a private market, according to Pitchbook, and was worth approximately $6.5 billion based on its IPO price of $34 per share.

Watch: IPO window opening remains to be seen despite strong Reddit IPO.