According to Fortune, Reddit cofounder Alexis Ohanian revealed that Y Combinator’s Paul Graham once called the platform’s name “poison to potential investors” and thought the Snoo mascot looked “so dumb” it should be hidden in a corner. This criticism came in 2005 when Ohanian and Steve Huffman were part of Y Combinator’s inaugural cohort after pivoting from their original food-ordering app idea. Despite Graham suggesting alternative names like “Octopop,” Ohanian stuck with Reddit and kept the alien logo. Today, Reddit boasts 444 million weekly active users across 100,000+ subreddits and hit a $38 billion valuation after going public in March 2024, with Huffman becoming a billionaire thanks to his 3.1 million shares.
When even geniuses get it wrong
Here’s the thing about startup advice: even the smartest investors can be spectacularly wrong about what actually matters. Paul Graham built Y Combinator into Silicon Valley’s most prestigious accelerator, but his take on Reddit’s branding was completely off base. He literally suggested turning the Reddit alien into an octopus if Ohanian insisted on keeping it. Thank God that didn’t happen.
What’s fascinating is how much early criticism focused on superficial elements rather than the core product. Graham was right about the big picture – building “the front page of the internet” – but completely missed that quirky branding could actually become part of the appeal. The name “Reddit” and that “dumb” alien became integral to the platform’s identity. I mean, how many tech brands do you see tattooed on people’s bodies?
The power of sticking to your guns
Ohanian’s story highlights something crucial about entrepreneurship: sometimes you have to trust your gut even when experts disagree. He admitted making “a lot of mistakes as a first-time CEO” but said disregarding Graham’s branding advice was “definitely one of the things I got right.” That conviction paid off spectacularly.
But let’s be real – this isn’t a blanket endorsement for ignoring all advice. Ohanian has been equally thoughtful about what counsel he does take, like Josh Kushner’s advice to “build your firm for what you think is best.” His venture firm Seven Seven Six now manages nearly $1 billion in assets, proving he knows when to listen and when to trust his own judgment.
From college project to internet institution
Looking at Reddit’s journey from Huffman coding the site in 20 days to becoming a public company worth tens of billions is pretty wild. They sold to Condé Nast for $10 million in 2006, which seemed huge at the time but now looks like pocket change compared to today’s valuation. The platform has survived multiple ownership changes, controversies, and the eternal challenge of content moderation.
What’s equally impressive is Ohanian’s evolution from Reddit cofounder to sports team owner and investor. His bet on women’s sports through Angel City FC and Los Angeles Golf Club shows he hasn’t lost his taste for going against conventional wisdom. He even saved tweets from haters who said he’d “lose all your money” on women’s sports and now tags them when hitting revenue milestones. That’s some satisfying revenge.
The next wave of founders
Ohanian’s current take on AI startups is particularly interesting. He thinks founders building companies in the AI age have a “default advantage” because “the DNA of their organization is in this new world.” Basically, they’re not trying to retrofit old systems – they’re building from the ground up for this reality.
His perspective on founder DNA and execution suggests we might see another wave of startups that ignore conventional wisdom and build something truly disruptive. After all, if someone had told the Reddit founders their simple forum would become a $38 billion business, they probably would have been laughed out of the room. Sometimes the craziest ideas work precisely because they’re different.
