In 2015, few people would have expected Discord to become the success it is today. It was launched as a platform for gamers to banter while playing games. Soon, it expanded to a platform where you could create your own servers and kept evolving. Today, it is a voice, text, and video app that hundreds of millions of users use to build communities. Since Discord is essentially free, some enterprising companies use it as a cost-effective substitute for work apps like Slack. 

Along the way, the company launched Nitro, its premium enhancement bundle that helped it pull $445 million in revenue for 2022, an increase of 42% year-on-year. For context, the company’s revenue in 2016 was $5 million. Nitro costs $2.99 or $9.99 a month, depending on the features you choose. Discord has over 175 million monthly active users and over 450 million registered accounts. The company was valued at $15 billion in 2021. It counts companies like TenCent, Sony, and Fidelity Investments, among others, as investors.

With such great numbers, it is only natural that retail investors would want a piece of the Discord pie. But the company is private. So, how does one invest in Discord? 

Invest in Discord Investors 

While Discord is a private company, a few companies that have invested in Discord aren’t; examples are Sony (NYSE: SONY) and Tencent (US:OTC: TCEHY). You can invest in Discord via them. Sony shares closed at $96 on February 9. Sony invested in Discord’s Series H $100 million funding round and said it was working towards fully integrating the social network on its PlayStation consoles. While this sounds like a good option, you have to keep in mind that Sony’s market cap at close on February 9 was $119 billion. Its investment in Discord is minuscule, and though its PS consoles might benefit from any potential increase in Discord’s valuation, it’s unlikely that its share price will.

It’s the same case with TenCent Holdings. TenCent is one of the largest companies in China. It owns tech companies, apps, and social media platforms in China and has invested in several startups outside the country. One of those investments is Discord. TenCent shares traded OTC (over the counter), and the company’s market cap as of February 9 was close to $350 billion. Even if Discord’s value doubles, TenCent’s share price will be minimally affected.

Invest Privately

There is a mutual fund called Private Shares Fund (FUND: PRIVX). As its name suggests, it invests in private companies that are backed by venture capital. It lists Discord as one of its top 10 holdings. 

Another option is to look at platforms like EquityBee, which enable investors to invest in companies that aren’t listed yet. 

Invest in Companies That Harness the Power of Discord

Discord is becoming very popular with brands who have identified the platform as a great way to build their communities. Brands like Samsung, Starbucks, and Gucci have used Discord very effectively to grow their communities and activate campaigns. However, Discord is not their primary marketing tool.

A better option would be to look at companies that grow in parallel to Discord's success. For instance, Reddit and PayPal (NASDAQ: PYPL)are both heavily connected with Discord users as a place to attract new users, and in PayPal's case, they process payments for many paid Discord servers. Many of the most popular Discord servers themselves started on Reddit and, to this day, continue to operate both as a Discord server and a Reddit subreddit. For instance, /r/WallStreetBets is the famous subreddit that kickstarted the meme stocks pump in January 2021. While Reddit is not a public company today, they are planning on having their IPO this year. Investing in either Reddit or PayPal is a smart way to invest indirectly in Discord.

One of the closest companies that grows in parallel to Discord is Asset Entities (NASDAQ: ASST), which focuses a large part of its resources on Discord. Asset Entities is a marketing company with a clear focus on Discord. It has been at the forefront of using Discord to build, grow, and engage communities for its clients. To that end, it has built tools to harness the power of Discord. 

Asset Entities has developed the DDM (Design, develop, manage) suite to empower both brands and individuals on Discord. The process begins with expert design and development, creating visually appealing and user-friendly servers tailored to unique brand identity. However, the true essence lies in ongoing management. Asset Entities takes charge of moderating conversations, nurturing discussions, and curating engaging content to ensure the continuous vibrancy of your server.

DDM enables the brand to attract new members through the Discord Discovery platform or by implementing AI-powered bots for streamlined tasks via their Ternary Development arm. They also offer educational resources to guide you through the ever-evolving Discord landscape.

The outcomes are tangible, with Asset Entities showcasing a proven track record of building flourishing communities boasting hundreds of thousands of members. Success stories include OptionsSwing, PixelDust Studios, and renowned celebrity fan clubs, all testifying to their expertise.

As Discord's user base experiences exponential growth, the demand for adept community management is set to soar. With a commitment to innovation and adaptability, Asset Entities stands ready to lead the way, assisting brands and individuals in unlocking the full potential of Discord communities.

Conclusion

Whether you want to invest privately or indirectly, Discord is a fast-growing tool that is beginning to enter the mainstream market as a social network tool and not just a chatting platform. With significant brands hopping on to engage with their audiences, growth for Discord seems highly likely, with newer generations preferring Discord servers over Facebook groups, Twitter, and other conventional social networks. 

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