Flip Launches $100M Creator Fund to Rival TikTok Shop

Flip Launches $100 Million Equity Fund for Creators

Flip, a burgeoning social commerce application, empowers users to function as content creators. The platform enables shoppers to share authentic product reviews and subsequently earn monetary compensation based on the level of engagement their content receives.

In a bid to differentiate itself within the intensely competitive landscape – facing rivals like TikTok Shop – Flip has recently unveiled a new creator fund. This initiative is designed to provide a distinctive advantage and attract a wider base of content partners.

Details of the Creator Fund

The fund, introduced earlier this week, allocates up to $100 million in equity to qualifying creators over the next five years. Grant amounts vary from $6,000 to $100,000, determined by a creator’s demonstrated engagement levels.

Flip intends to distribute as much as $1 million daily during the initial 30-day period of the program. This rapid disbursement aims to quickly incentivize participation and build momentum.

This new approach distinguishes Flip from its competitors by offering creators a stake in the company’s potential future value. Creators who continue their involvement could benefit substantially, contingent upon Flip’s performance.

It is important to acknowledge that these returns are not guaranteed and are subject to fluctuations in the market.

Eligibility Requirements and Application Process

To qualify for a grant, a Flip creator must have a following exceeding 4,000 users and have posted a minimum of 10 videos within the past 30 days. Each video should achieve approximately 3,000 views.

Flip also welcomes creators who possess at least 20,000 followers on established platforms such as Instagram, TikTok, and YouTube. The company reviews applications and communicates grant awards within 48 to 72 hours.

Payments will be distributed in cash, either after a five-year period or in the event of a company acquisition. Flip President Eddie Vivas indicated to TechCrunch that an acquisition is not currently a desired outcome.

The company’s long-term objective is to pursue an initial public offering (IPO).

Early Program Response and Growth

Within the first 72 hours of the program’s launch, nearly 10,000 influencers submitted applications, according to Vivas. Approximately 22% of these applications originated from established, high-profile influencers.

A live leaderboard displaying all grant awards is currently accessible on the creator fund page. As of the latest update, Tyler K (@cheftyler) has received the largest grant, totaling $67,000.

Given the uncertainty surrounding TikTok’s future in the United States, Flip anticipates that its new creator fund will encourage increased user activity and engagement on its platform.

Recent User Acquisition and Future Plans

Flip has experienced substantial growth recently, with an estimated 580,000 new downloads in January alone, as reported by Appfigures, an app store intelligence provider.

The application has accumulated a total of 7.8 million downloads globally across both the App Store and Google Play Store, according to Appfigures data.

Currently, Flip is adding approximately 250,000 new users each day. Users spend an average of 35 minutes per day actively using the application.

On Monday, Flip reached the No. 10 position in the Overall Top Charts within the U.S. App Store.

To sustain its momentum and maintain a competitive edge, Vivas stated that Flip intends to introduce additional social features in the coming months. These enhancements will include polls, group chat functionality, and improved methods for content resharing.

“We are focused on becoming a more full-featured, dynamic social commerce platform building on the base we have today, which is now clearly working,” Vivas explained.

Launched in 2021, Flip has successfully raised $236 million in funding to date and is currently valued at $1.1 billion.