The weird thing about reddit is that, for a community its size - now I'm no longer at reddit, but the public traffic numbers that they put out are, I think with the site about eight million unique visitors a month, or every 30 days, which is a fairly big site.

I want to be in an industry where the upstarts can grow and displace the incumbents, because that's why there's so much innovation.

The Internet is such a tough marketplace because everyone is a click away from going back to a cat photo, or going back to whatever else they were doing. You have to win them over, and do it quickly, and do it by making something people actually want.

The stage of investing that I do is seed stage, so it's really early. Here's a pair of founders who maybe have a prototype. They have a little bit of traction, maybe one employee, tops. At that stage, you really, really can only evaluate a company based on those founders and what they've been able to build. It's very, very team driven.

Having that kind of endorsement and having Paul Graham's readership coming to your site and contributing to it and building the foundation of the community was just a really invaluable way to start Reddit.

You can throw - and we've seen plenty of these kinds of companies - millions of dollars in advertising for a website or a service, and in the end if it's not useful no one's going to use it.

The best part of being an angel investor is seeing these kids coming up with companies that get way more traffic than Reddit had when we sold it. I think, 'Are you kidding me? They're just kids, and they've done so much.