Alexis Ohanian on Why He Left Reddit and Values-Driven Startups

TL;DR

Alexis Ohanian resigned from Reddit in 2020, asking the board to replace him with a Black director after George Floyd was killed. He argues building a business with values serves long-term profit, and that the resilience driving top tech founders often comes from early hardship or a need to prove someone wrong.

Transcript

how do we get values back and how do you evaluate the values of the people that you're investing in part of what has changed is the stakes have gotten a lot higher starting Reddit 2005 when Zuck started Facebook it was inconceivable that we could build businesses that could affect the world right that could affect elections that could affect the Ze... Read More

Key Insights

• Alexis Ohanian resigned from Reddit in 2020 after 15 years, requesting the board replace him with a Black director following the killing of George Floyd, framing the decision around values.
• Values and long-term profit align, according to Ohanian, who started his firm 776 to invest in startups trying to make the world better, calling values-driven business 'the best thing for long term greed.'
• The stakes of building social media have risen dramatically. Ohanian says early founders like himself and Zuckerberg could not conceive their platforms would affect elections or the world, but today no founder is ignorant of that role.
• Ohanian says he never really felt impostor syndrome, crediting the advantage of showing up as a 'tall confident straight white guy' who gets the benefit of the doubt in most rooms.
• Paul Graham was the first person to make Ohanian feel he did not belong, remarking that Alexis 'sounds so much smarter' speaking German than English, which Ohanian converted into motivation to prove him wrong.
• Ohanian collects put-downs as fuel, pinning 'you are a rounding error' (a Yahoo executive's insult) on his office wall; Reddit surpassed Yahoo in traffic about 12-13 years later.
• Many top tech founders share early adversity. Ohanian notes figures like Jobs, Bezos, and Musk often had difficult childhoods or absent parents, suggesting a certain 'brokenness' fuels the drive to keep building.
• Founders now operate in a 'world of gray,' especially with AI, balancing duty to investors, doing right by society, and the need to win, per Ohanian's view of modern entrepreneurship.

Questions & Answers

Q: Why did Alexis Ohanian leave Reddit?

Ohanian resigned from Reddit in 2020 after 15 years building the company, doing so in protest after George Floyd was killed. He requested that the board replace him with a Black director. He frames the decision around values, describing himself as an entrepreneur and investor who believes integrity and long-term profits go hand in hand rather than in conflict.

Q: What is Alexis Ohanian's company 776?

776 is the new company Ohanian started after Reddit, which allows him to invest in startups that are trying to make the world a better place. It reflects his belief that building a business with values is the best thing for long-term profit. In his words, values-driven business turns out to be 'the best thing for long term greed,' aligning integrity with returns.

Q: Does Alexis Ohanian experience impostor syndrome?

Ohanian says he does not think he has ever really felt impostor syndrome, defined as feeling unqualified and wanting to keep it secret. He acknowledges moments of reaching a harder 'level' he was not fully equipped for, but credits the advantage of showing up as a tall, confident, straight white guy who receives the benefit of the doubt in most rooms.

Q: What did Paul Graham say that motivated Alexis Ohanian?

At an early Y Combinator dinner, Paul Graham heard Ohanian speaking German with a Danish founder and told Ohanian's co-founder Steve that 'Alexis sounds so much smarter when he's speaking in German than in English.' Ohanian was stung but used it as fuel to prove Graham wrong, later reflecting on the moment after giving a TED Talk to a standing ovation.

Q: How does Alexis Ohanian turn insults into motivation?

Ohanian collects put-downs and displays them to stay motivated. When a Yahoo executive called Reddit 'a rounding error compared to Yahoo,' Ohanian pinned that phrase on his office wall to look at every morning. About 12 to 13 years later, Reddit surpassed Yahoo in traffic, and he tweeted the story, expressing gratitude for the motivating slight.

Q: Do difficult childhoods make better tech founders?

Ohanian observes that many top tech founders, including figures like Jobs, Bezos, and Musk, often had tough situations or an absent or difficult parent, such as Musk's tortured relationship with his father. He suggests a certain 'brokenness' can fuel relentless drive, but cautions against being horrible to children and notes success can also come from stability.

Q: Can the mindset of turning criticism into fuel be learned?

Ohanian believes the seeds of resilience are almost always present early in life, often by ages 18 or 19 when he first meets founders. He has seen founders build resilience and fortitude over time, but says the underlying drive tends to be present from the start, frequently among first-generation immigrants or those needing to prove something.

Q: How have the stakes of building social media changed since 2005?

Ohanian says that when he started Reddit in 2005 and Zuckerberg started Facebook, it was inconceivable that these businesses could affect the world, elections, or the Zeitgeist. None of the first-wave social media creators could conceive of the role their platforms play today. Now no founder is ignorant of that impact, creating a 'world of gray,' especially in the age of AI.

Summary & Key Takeaways

• Alexis Ohanian, Reddit's co-founder, resigned in 2020 after 15 years and asked the board to replace him with a Black director following George Floyd's killing. He believes integrity and long-term profit go together, which is why he founded 776 to back startups trying to improve the world.

• Ohanian says he rarely felt impostor syndrome, partly due to loving parents and the benefit of the doubt he receives as a tall, confident white man. When Paul Graham implied he did not belong at Y Combinator, Ohanian used the slight as motivation rather than feeling defeated.

• He collects insults as fuel, pinning a Yahoo executive's 'rounding error' jab on his wall until Reddit outgrew Yahoo. He observes that many top tech founders carry early 'brokenness' or a need to prove themselves, though he would not trade his own stable childhood for it.