CNN The founder of a $40 million startup that has been a major force in the tech industry says he’ll be “a little bit sad” when he closes out his first day at work after a $300 million valuation.
Jared Leto told Business Insider on Wednesday that he’s been in a state of shock since the news broke earlier this week that his venture capital firm had raised a $500 million round of financing.
He also had some bad news for investors who had been hoping to get some exposure to the company: the company is in a very deep recession, according to a new report.
“It’s been a very hard year,” Leto said.
“There’s been so much disruption to the economy, and I think people are still surprised at how much we’ve accomplished.”
Leto, a cofounder of the social-networking service Reddit, and his business partner Josh Silverman launched Leto Ventures in 2014 after realizing that they didn’t have enough funds to go after the next big startup.
The funding raised $10 million, with the goal of building an app that let users post videos and photos, and let others see what the people posting those images were thinking about.
The company went on to raise $15 million from investors including Sequoia Capital, Kleiner Perkins, and Tencent, with $10.5 million going to Leto and the rest going to Silverman.
Since its launch, the company has grown to over 300 employees, and it has sold more than 300 million videos and more than 1.5 billion images, according Toe Tag.
Silverman, who previously cofounded Snapchat, is leaving the company, Leto revealed.
The new investor, Sequoias cofounder and cofounder Anthony Noto, confirmed the departure of Silverman, but did not say how much money he had invested in Leto.
Noto said that while he was excited about the potential of Leto, he was worried about the company’s business model.
“I think it’s a little bit premature to say it’s dead,” Noto said of Letopro, the social network.
“It’s just that there’s been too much disruption.
There’s been an increase in consumerism, there’s a reduction in quality of life, there is a reduction of trust, and people are feeling a little tired.”
Letopro has since closed a $30 million Series B round of funding led by Tencent and led by Microsoft, and Silverman and Leto have invested more than $10 billion in companies like Zynga, Spotify, and Apple.
They have also been involved in many successful crowdfunding campaigns for projects like the Oculus Rift virtual reality headset and the Amazon Echo speaker, but Letoproteomics struggles to stay afloat and has been hit with a lawsuit filed by the New York attorney general.
Silver and Letos first launched Letopropes in 2016, but it was forced to shut down after an online harassment campaign led to its closure.
In an interview with CNN earlier this year, Letoprotique CEO Jonathan Green said he thought his startup would survive but had no idea that he would be the target of a massive online campaign that led to it being shut down.
“We had no clue what was going on,” Green said at the time.
“I thought we were going to survive, and we did.”
A spokesperson for Letoprox said that the company will now be “focused on its operations and future.”