Discord has become a central hub for online communication since its launch in 2015. Whether you’re a gamer, part of a community, or just someone who likes to chat with friends, you’ve probably used this popular platform. Discord Inc. is owned by its founders Jason Citron and Stanislav Vishnevskiy, who created the platform as a communication tool after pivoting from their original gaming project.
The company has grown significantly over the years, attracting investment from various sources including Chinese tech giant Tencent. What started as a chat feature for gamers has evolved into a comprehensive social platform for voice calls, video calls, and text messaging used by millions worldwide. For many teens and gamers, Discord has become their entire online social lives, reflecting how internet communication continues to evolve.
Key Takeaways
- Discord Inc. is owned by founders Jason Citron and Stanislav Vishnevskiy who established the platform in 2015.
- The communication platform has secured funding from multiple investors including Tencent and has grown from a gaming chat tool to a comprehensive social hub.
- Discord offers instant messaging, voice calls, video calls, and media sharing capabilities that serve communities beyond just gaming.
Ownership and Financial Backing
Discord has evolved from a small startup to a major tech company through strategic investments and leadership. The platform maintains its independence while attracting significant financial backing from various investors.
Initial Stakeholders
Discord was founded in 2015 by Jason Citron and Stanislav Vishnevskiy, who remain key stakeholders in the company. Citron serves as CEO and brings valuable experience from his previous gaming ventures.
The founders initially maintained majority control of the company, which helped them guide Discord’s development according to their vision. This ownership structure allowed them to pivot from a gaming-focused platform to a wider communication tool.
Early employees and angel investors also received equity stakes during the company’s formation. This initial ownership group established Discord’s foundation before larger investment rounds began to shape its financial structure.
Major Investors and Their Roles
Discord has attracted impressive financial backing through several funding rounds. Major venture capital firms like Benchmark, Greylock Partners, and Index Ventures were early supporters.
Tencent, the Chinese tech giant, invested in Discord during later funding stages, bringing international expertise. Other notable investors include Sony Interactive Entertainment, which created strategic gaming partnerships alongside their investment.
By 2021, Discord had raised over $480 million in venture funding. This financial support helped the company expand while remaining privately held rather than pursuing an IPO.
The company’s 2020 revenue reached $130 million, showing strong growth potential to investors. Discord’s valuation has increased dramatically with each investment round, reflecting investor confidence in its business model.
Microsoft’s Acquisition Interests
In early 2021, Microsoft showed serious interest in acquiring Discord for approximately $10 billion. This potential deal highlighted Discord’s strategic value in the gaming and communication sectors.
Discord ultimately rejected the offer, choosing to maintain independence rather than joining Microsoft’s growing portfolio of communication platforms. This decision reflected the founders’ commitment to their original vision.
Microsoft’s interest stemmed from Discord’s strong community features and young user base. An acquisition would have complemented Microsoft’s Xbox gaming division and Teams communication platform.
Despite declining the offer, Discord continues to work with Microsoft on gaming integrations. The acquisition talks demonstrated Discord’s significant market position and potential future value.
Company Valuation and Revenue Streams
Discord has grown tremendously since its founding in 2015, with its valuation increasing alongside its expanding user base. The company has developed several revenue streams while maintaining its core free service model.
Valuation Over Time
Discord’s valuation has seen impressive growth over the years. In 2019, the company was valued at $2.5 billion. Just a year later in 2020, that number jumped significantly to $7.3 billion.
The growth didn’t stop there. By 2023, Discord reached a remarkable valuation of $15.2 billion, more than doubling its worth in just three years. This valuation represented a revenue multiple of 25.3x based on its 2023 revenue of $600 million.
This rapid increase reflects investors’ confidence in Discord’s business model and future growth potential. The platform has become essential for many communities, especially gamers, creating a strong foundation for its market position.
Revenue Sources
Discord generates money through several channels while keeping its basic service free. Its primary revenue source is Nitro – a premium subscription that offers enhanced features like higher upload limits and better video quality.
The company has also been experimenting with new revenue streams to justify its $15 billion valuation. This includes an expanded online marketplace where users can purchase games and virtual items.
Other revenue sources include:
- Server boosts
- Game sales (through partnerships)
- Premium emojis and stickers
Discord’s business model focuses on adding value through optional upgrades rather than forcing users to pay or showing advertisements. This approach has helped maintain user loyalty while still generating significant revenue.
Impact of the Covid-19 Pandemic on Revenue
The Covid-19 pandemic created a perfect environment for Discord’s growth. As people sought ways to stay connected during lockdowns, Discord’s user base expanded dramatically beyond its original gaming audience.
This period saw Discord’s valuation jump from $2.5 billion to $7.3 billion between 2019 and 2020, reflecting the surge in users and activity. The platform became essential for remote work, education, and social connections.
Many new communities formed during this time, from study groups to virtual clubs. This diversification of Discord’s user base opened new revenue opportunities and strengthened its position in the market.
The pandemic accelerated Discord’s growth trajectory by several years, helping it transform from a gaming-focused chat platform to a mainstream communication tool. This broader appeal has been crucial for its continued revenue growth and valuation increases.
Growth and User Base
Discord has experienced remarkable growth since its launch, evolving from a gaming-focused platform to a widely-used communication tool. The company has consistently expanded its user base through strategic developments and community-focused features.
Monthly Active Users
Discord has seen impressive user growth over the years. The platform jumped from just 10 million monthly active users in 2016 to 45 million in 2018, showing how quickly people embraced the service. By January 2023, Discord had approximately 563 million registered users, marking an amazing 87% growth from the 300 million users it had in June 2020.
This rapid expansion happened despite Discord initially struggling to find a good way to make money. The company prioritized user experience and growth over immediate profits, which helped them build loyalty.
Discord’s monthly active users continue to climb as more people discover the platform’s unique communication features. The service became especially popular during the pandemic when people needed virtual spaces to connect.
Community Engagement
Discord’s success largely comes from its community-focused approach. The platform allows users to create and join servers based on shared interests, fostering tight-knit communities.
Users can communicate through voice calls, video calls, text messaging, and media sharing, making it versatile for different types of engagement. This flexibility helps communities stay connected in whatever way works best for them.
Discord stands out by offering features like:
- Custom emojis and stickers
- Server roles and permissions
- Bots for automation and engagement
- Thread conversations
- Live events and activities
These tools help server owners create engaging spaces that keep members coming back. Many communities have flourished on Discord, with some servers becoming hubs for thousands of like-minded individuals.
Expansion Beyond Gaming
While Discord started as a platform for gamers, it has successfully expanded far beyond this initial audience. The company realized its communication tools could benefit many different groups.
Discord has grown by carefully layering new features that appeal to broader audiences while maintaining what made it popular with its core users. Today, you’ll find Discord servers for:
- Educational communities
- Professional networking
- Creative collaborations
- Hobby enthusiasts
- Brand communities
- Social groups
Many businesses now use Discord to connect with customers and build brand loyalty. Even educational institutions have adopted the platform for virtual learning environments.
This expansion strategy has been crucial for Discord’s continued growth. By welcoming communities beyond gaming, Discord has positioned itself as a versatile communication platform for nearly any group.
Product Features
Discord offers a robust set of features that make it a versatile platform for both casual and serious users. The platform combines communication tools with specialized features for gamers and communities.
Core Communication Features
Discord’s voice, video, and text communication tools help over two hundred million people connect with friends. Users can create servers with multiple text and voice channels organized by topic.
Text chat supports rich formatting, emoji reactions, and file sharing. Users can send direct messages to friends or participate in group conversations within servers.
Voice channels allow for crystal-clear audio chats while video calls enable face-to-face interaction. Screen sharing makes it easy to display gameplay or collaborate on projects.
Discord offers customizable notification settings so users only get alerts for what matters to them. Server moderators can set permissions to control who can post in which channels.
The platform works seamlessly across devices including computers, phones, and tablets, keeping conversations in sync everywhere.
Gaming Integration Services
Discord was originally built with gamers in mind and continues to offer special gaming features. Game detection automatically displays what games users are playing in their status.
Rich presence integration with popular titles shows detailed information about a player’s current activity. This makes it easy to see what level friends are on or what mode they’re playing.
Users can quickly join friends’ games through Discord with just one click. The platform also supports overlay features that work while gaming, allowing chat access without leaving the game.
Discord’s partnerships with game developers enable special integrations and verified servers for official game communities. These verified servers often provide news updates directly from developers.
Bot integration allows for custom commands related to gaming, from role assignments based on favorite games to automatic tournament organization.
Strategic Acquisitions and Partnerships
Discord has grown its platform through smart business moves and team-ups with other companies. These strategic decisions have helped make the chat app more useful and reach more users around the world.
Acquisitions Enhancing Discord Features
Discord has made several key acquisitions to improve its platform.
In 2021, Discord acquired Sentropy, a company that specialized in using AI to detect and manage online harassment. This move helped Discord enhance its safety features and create a more positive environment for users.
Another notable acquisition was Ubiquity6, an augmented reality startup. This purchase gave Discord access to technology that could be used for more interactive chat experiences.
The company also bought Blitz App, a helper tool for gamers. This addition fit perfectly with Discord’s gaming roots and provided users with more gaming-focused features.
These acquisitions show how Discord, founded by Jason Citron and Stanislav Vishnevskiy, continues to expand its technical capabilities through strategic purchases.
Partnerships with Other Platforms
Discord has formed partnerships with numerous gaming companies and platforms to enhance its service.
The company created special integrations with major game stores like Steam and Epic Games, allowing players to connect their accounts and show friends what they’re playing.
PlayStation formed a notable partnership with Discord in 2021. This deal brought Discord’s communication features to PlayStation consoles, helping gamers chat more easily while playing.
Discord also partnered with Spotify, enabling users to share what music they’re listening to in real-time. This feature has been popular among the platform’s younger users.
Microsoft nearly acquired Discord in 2021 for around $10 billion, but the deal fell through. Instead, the two companies maintained a partnership that includes Xbox integration.
These collaborations have helped Discord expand beyond its original gaming focus to become a communication hub for many different communities.
Future Outlook
Discord’s journey from a gaming chat platform to a communication giant continues to evolve. The company faces important decisions about ownership structure and its vision for connecting communities in the years ahead.
Prospects for an Initial Public Offering
Discord is reportedly exploring an IPO in 2025, which would mark a major milestone in the company’s history. This move could dramatically change who controls the platform moving forward.
The company has already begun early talks with investment bankers about the potential public offering. These discussions suggest Discord is seriously considering opening ownership to public shareholders.
Discord’s last private valuation in 2021 reached approximately $15 billion – a figure that would make its IPO one of the larger tech offerings in recent years.
The timing is notable as Discord previously turned down acquisition offers, including a reported bid from Microsoft in 2021. Going public would provide early investors and employees an opportunity to cash out while giving Discord capital for expansion.
Long-Term Vision for Discord
Discord’s leadership continues to emphasize community-building as central to their mission. They aim to expand beyond their gaming roots while maintaining the features that made the platform popular.
The company has steadily introduced new features to appeal to different user groups – from students to professional communities. This broadening appeal helps position Discord for growth beyond its core gaming audience.
Revenue diversification remains a priority, with Discord’s Nitro subscription service and server boosting options becoming increasingly important. These monetization strategies will likely expand further as Discord prepares for public market scrutiny.
Security and content moderation improvements are also key focus areas. Discord knows that maintaining user trust is essential for long-term success, especially as it grows into new markets and user demographics.
Headquarters and Locations
Discord is headquartered in San Francisco, California, at 444 De Haro Street in the United States. This vibrant city serves as the central hub for Discord’s operations.
The company maintains a small physical footprint with just 2 office locations in total. This reflects Discord’s embrace of remote work and digital collaboration. This is fitting for a company built around online communication.
San Francisco’s tech ecosystem provides Discord with access to talent, investors, and industry connections. The Bay Area location places Discord in the heart of Silicon Valley, where many other major tech companies also call home.
Discord Inc. is incorporated and registered under Delaware laws, which is common for many US tech companies due to favorable business regulations. However, their operational headquarters remains in San Francisco.
The platform’s physical presence might be small, but Discord’s digital reach is vast. The instant messaging and VoIP social platform connects millions of users worldwide. It also maintains its relatively compact headquarters setup.
