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Tipping for content 💸

Tipping for content 💸
May 12, 2021

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We've all heard of the influencers whose careers have taken off, with millions of followers and lucrative, sponsored content deals. Social media companies that host the maturing influencer industry are realizing that incentivizing both aspiring and mega-creators is good for business. Companies are creating more opportunities to monetize followers and the latest is to enable viewers, fans, and followers to tip their favorite creators, in turn delivering more content to the followers and generating more time on the platforms.

                                   

Streaming Services

  • The streaming channel for gamers, Twitch, has been offering a tipping feature for years. Twitch viewers listening to the latest beats by their favorite DJ or watching their favorite gamer can show their appreciation through tips.

  • Cool kids app Clubhouse has partnered with Stripe to offer it's content creators direct payments. For now, the company says it won’t be taking a cut, but at some point, the company will need to generate revenue. The question is: will it be through ads or a percentage of tips or both?

  • Music streaming platform Soundcloud is preparing to offer fans the opportunity to send direct payments to musicians, while Spotify introduced this feature in August. These moves might have something to do with musicians' complaints that streaming services simply do not pay artists enough.

Major Players

  • YouTube has been experimenting for years with features like “Applause,” which gives the channel $2 per click, and “Super Chat” for channels with over 1K subscribers.

  • In April, users noticed the new Twitter feature “Tip Jar,” which allows users to add Venmo, CashApp & more to receive direct tips.

  • Facebook and Instagram recently began offering “Stars'' virtual currency and “Badges,” respectively. Facebook says the number of content producers earning more than $10K monthly grew 88% between 2019 & 2020 and is expected to increase further in the coming years.

Subscriptions

  • Content providers such as writers, artists, and educators are asking fans to make ongoing contributions through subscriptions with companies like Patreon and Memberful, which was acquired by Patreon in 2018.


The bottom line: 

Content creators are asking for a larger piece of the pie for the attention they bring to these sites. Companies are opening up channels for consumers to support them directly. The viewers, listeners, and fans are happily showing their gratitude, while social media companies make sure the content keeps flowing.

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Offices are reopening, but can we go back to the old ways?
Since last week, PrivCo has added:
533 Companies | 189 Funding Activities | 87 M&A Deals

Funding & Deal Highlights:

 

LoanSnap raises $30MM from True Ventures

Loan Software & Internet Services • Round B • Costa Mesa, CA
 

Pawp raises $14MM from Lux Capital Management

Pet E-commerce Software & Internet Services • Round A • New York, NY


Firefly Aerospace raises $75MM from DADA Holdings

Aerospace & Defense • Round A • Cedar Park, TX


Vanta raises $50MM from Sequoia Capital 

Automation Software & Internet Services • Round A • San Francisco, CA


Solid Power Battery raises $130MM from Ford Motor Company

Industrial Products • Round B • Louisville, CO


RTFKT raises $8MM from Andreessen Horowitz

Apparel, Footwear & Accessories • Seed • South Jordan, Utah


Persona raises $50MM from Index Ventures

Cyber Security Software & Internet Services • Round B • San Francisco, CA


Thentia raises $10MM from Spring Mountain Capital

Government Software & Internet Services • Round B • Chicago, IL


JupiterOne raises $30MM from Sapphire Ventures

Cloud Software & Internet Services • Round B • Morrisville, NC


Headway raises $70MM from Andreessen Horowitz

Mental Health Software & Internet Services • Round B • New York, NY


Recount Media raises $18MM from Union Square Ventures

Telecommunication Services • Round B • New York, NY


VAST Data raises $83MM from Tiger Global Management

Data Software & Internet Services • Round D • New York, NY


Offen Petroleum acquires Petromark

Convenience Store & Gas Station • Acquisition • Harrison, Arkansas


AMN Healthcare Services acquires Synzi for $42MM

Telehealth Software & Internet Services • Acquisition • Saint Petersburg, FL


Harvest Partners acquires HelpSystems

Analytics Software & Internet Services • Acquisition • Eden Prairie, MN


Hellman & Friedman LLC acquires At Home Group Inc. for $2.8BN

Home & Electronics Retail • Acquisition • Plano, TX

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