Flip Introduces $100M Equity Fund to Empower Content Creators

Social commerce platform Flip has unveiled a new initiative designed to attract and support content creators through a $100 million equity fund. Positioned as a competitor to TikTok Shop, Flip provides an interactive space where users can review products, share their experiences, and earn income based on engagement metrics. This latest move reflects the company’s strategy to differentiate itself in the increasingly crowded social commerce market.

Flip Introduces $100M Equity Fund to Empower Content Creators
Flip Introduces $100M Equity Fund to Empower Content Creators

Social commerce platform Flip has unveiled a new initiative designed to attract and support content creators through a $100 million equity fund. Positioned as a competitor to TikTok Shop, Flip provides an interactive space where users can review products, share their experiences, and earn income based on engagement metrics. This latest move reflects the company’s strategy to differentiate itself in the increasingly crowded social commerce market.

The equity fund, which launched quietly last week, is set to grant up to $100 million in equity over the next five years. Eligible creators will receive grants ranging between $6,000 and $100,000, depending on their engagement levels. During the first 30 days of the program, Flip aims to distribute up to $1 million daily, according to company statements.

What makes this fund unique is its equity-based structure, giving creators a stake in the company rather than just a monetary payout. Unlike standard creator payment programs, equity offers the potential for significant long-term returns, contingent upon Flip's future success. However, it is important to note that such returns are not guaranteed and will depend on market dynamics and company growth.

To qualify for the fund, creators on Flip need a minimum of 4,000 followers and must have posted at least 10 videos in the last 30 days, each garnering around 3,000 views. Additionally, creators with at least 20,000 followers on other platforms, such as Instagram, TikTok, or YouTube, are also eligible. Applications are reviewed within 48 to 72 hours, and successful applicants are awarded grants accordingly.

Payments are structured to occur within five years or earlier if the company undergoes a sale. However, Flip President Eddie Vivas has stated, “We don’t currently see an acquisition as an interesting outcome for our company. Our goal is to take the company public one day.”

Since the program's rollout, nearly 10,000 influencers have applied, with approximately 22% of applications coming from larger influencers, according to Vivas. The fund’s dedicated page displays a live leaderboard of grants awarded. As of now, the largest grant has been $67,000, allocated to Tyler K (@cheftyler).

With TikTok facing ongoing uncertainties in the U.S., Flip seems intent on leveraging its creator fund to draw more users and establish itself as a viable alternative. According to Appfigures, the app attracted 580,000 new downloads in January and recently reached the No. 10 spot on the Apple U.S. App Store's Overall Top Charts. The company reports that it is currently gaining around 250,000 new users daily, with users spending an average of 35 minutes per session.

To sustain its momentum, Flip plans to introduce new social features in the coming months, including polls, group chats, and “elegant ways to repost.” These updates are part of the company’s effort to become a “full-featured, dynamic social commerce platform,” said Vivas.

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