In an announcement, the Bitcoin micropayments startup Tibdit says that it has raised £122,080 in seed capital through a crowdfunding campaign. Founded not long ago but in September 2013, the London firm lets users send Bitcoin tips or ‘tibs’ between £3–£70 to content producers and so far has been able to garner huge support.
Talking about the latest funding round, Tibdit co-founder Justin Maxwell said the company’s decision to use Seedrs reflected the “democratic” ethos of its business. According to him micropayments made via Tibdit are inherently very ‘democratic’, providing an opportunity for everyone whether they are the online equivalent of buskers mainstream content providers.
Earlier in January, Tibdit launched its new service allowing online content publishers to collect Bitcoin micropayments through a WordPress website plug-in. The company had then declared that the new service could add to the rising interest in micro-transactions characterized by ChangeTip, a social media tipping tool.
Looks like the company is quite innovative when it comes to finding out the latest solutions; however, it also needs funds to run the operations and expand further. The latest funding round is just an indication that the company is rising to the occasion. The Funding took place on equity crowdfunding platform Seedrs, 161 investors will receive 15.03% equity in the firm.
Funds will be used for Bringing New Features
The company claims that roughly half of its money will go towards additional features, while a third will be used to expand the handful of sites that currently support Tibdit. The remainder will cover operational expenses. Maxwell said that they have identified a number of sectors where tibbing can be of real value and has a really good fit, and are prioritizing these now.
It has come to notice that Bitcoin micropayments have been largely popularized by tipping platform ChangeTip, which markets itself as a ‘love button’ for social media platforms like Twitter, Reddit and SoundCloud. Interesting, this was not the first funding, back in December, the firm raised $3.5m seed funding from investors including Pantera Capital and 500 Startups.
Another interesting fact about Tibdit is that unlike its competitor, WordPress plugin Tibdit facilitates both tips and ‘access payments’, where users can pay to view content beyond a publisher’s paywall. Nonetheless, as the publisher, or ‘tibbee’, cannot see the value of each transaction, Maxwell said they are “forced to treat ever tibber equally”.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org