TikTok Unveils a $2 Billion Global Fund to Pay Creators
After reports of Instagram poaching TikTok creators emerged, TikTok says it’s ramping up its Creator Fund to over a billion dollars in the United States in the next three years, up from the $200 million it originally announced. The China-based startup adds that the fund will grow to nearly $2 billion in total to pay creators across the world.
“We have seen an incredible response to the Creator Fund and are excited to share that we expect this Fund will grow to over $1 billion in the U.S. in the next 3 years, and more than double that globally,” Vanessa Pappas, General Manager, TikTok, wrote in an updated blog post on Wednesday, July 29th.
TikTok earlier said the funds will “help support ambitious creators who are seeking opportunities to foster a livelihood through their innovative content.”
In addition, to celebrate its second anniversary, TikTok has unveiled a separate fund for financing creators in the U.K. and select European regions. The company claims that in the first year, it will distribute $70 million in funds and expects it to rise to a total of at least $300 million within three years. This is likely part of the $2 billion global fund, but we’ve reached to TikTok for more clarity.
TikTok will share more details on these funds and how creators can apply in the “next few weeks”.
“Creativity is the lifeblood of TikTok, and we want to mark our second birthday by supporting the community that makes us who we are,” commented Rich Waterworth, General Manager, Europe. “To further nurture and promote the creative talent that is so vital to the U.K., we’re excited to announce the launch of the TikTok Creator Fund in the U.K., alongside a number of other European countries we operate in.”
TikTok’s update arrives two days after The Wall Street Journal reported that Instagram has been poaching TikTok creators to use its similar new service called Reels. The Facebook-owned social network has reportedly reached out to several high-profile TikTok creators with lucrative offers and “potential payments for some would be in the hundreds of thousands of dollars.”
TikTok has been facing increasing scrutiny in the United States as the White House considers potentially banning it altogether over privacy and security concerns. Earlier this week, the Biden campaign asked its staff members to delete TikTok from both their personal and work phones. The video-based app has already been forced to exit its largest market, India.