🕶️ The rise of TikTok Shop: implications for startups

Author

Paula Echeverria
August 24, 2024

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Have you tried shopping on TikTok Shop? 🛒  The platform's explosive 500% growth in Gross Merchandise Value (GMV) is a must-watch tool for startups.

But TikTok isn’t the only social media platform making waves. Threads is already dipping its toes into ads—though for now, it remains ad-free.

Meanwhile, an unexpected alliance has formed between Mark Zuckerberg and Spotify’s Daniel Ek, both expressing concerns over Europe’s regulatory stance on open-source AI. Why is this becoming a hot topic? We’re diving into that today!

Have a fantastic weekend, and we’ll catch up with you next Tuesday.

🕶️
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Six bullets of updates

  1. 💰 Threads spotted exploring ads, but no immediate plans for monetization, keeping it ad-free for now.

  2. 📈 Interest in franchising is up 30% as people seek financial security. Explore semi-absentee ownership while keeping your day job.

  3. 🎶 Now you can add a favorite song to your Instagram profile, just like the Myspace days.

  4. 🇧🇷 Brazilian CRM Syonet merges with Lead Force, expands to Mexico, and targets international scale with 4M+ generated leads.

  5. ⛵ UK startup Drift is developing autonomous yachts that produce green hydrogen at sea and carry 2-4 tonnes per trip.

  6. 📦 Dropbox acquires AI scheduling tool Reclaim.ai, backed by Index Ventures, aiming to boost productivity tools.

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TikTok's e-commerce surge: what it means for startups

Forbes Argentina

TikTok Shop has rapidly become a powerhouse in the e-commerce world, posting over 500% growth in gross merchandise value (GMV) through live commerce in just eight months. As it plans significant investments in discount promotions for the final quarter of 2024, TikTok is set to outpace competitors like China's Temu and Shopee. The platform's unique approach, which prioritizes entertainment-driven commerce, has attracted millions of creators and sellers, particularly in Thailand, where 77% of consumers shop online weekly.

TikTok's success is fueled by innovative features like the Shop Tab and upcoming AI tools, which make it easier for users to buy products directly from the app. An example of this success is Stormi Steele, a startup founder who generated over $1 million in sales during a single live stream on TikTok Shop. With its rapidly growing influence, TikTok is positioning itself as an essential platform for startups and e-commerce businesses.

As TikTok continues to expand its reach, the question arises: Is TikTok now a must-have tool for startups and e-commerce businesses looking to thrive in a competitive market? Read more! 

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Startup Events and Deadlines

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Learn how to launch and grow an affiliate program for SaaS

Launching an affiliate program for your SaaS business can be intimidating if you’re new to it, but it is pretty simple. Rewardful has boiled it down to three core principles in their free online course:

  • Principle 1: Make it simple for affiliates to earn money

  • Principle 2: Run your program like a professional

  • Principle 3: Build an affiliate recruitment system

By the end of the course, you'll have a clear picture of how affiliate marketing can work for your business.

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These companies just raised money

  1. 🎫 Zomato acquires Paytm’s ticketing business for $244M, boosting its entertainment portfolio.

  2. 🔗 Opkey, an AI-based ERP testing platform, raises $47M to streamline enterprise software testing.

  3. 🛍️ Tilt raised $18M in Series A funding to expand its live-shopping app, which has been highly successful in Asian markets.

  4. 🖌️ Creatopy raises $10M Series A to automate ad creation using AI, serving 5,000+ brands and agencies.

  5. 💳 Kenyan HR and payroll startup WorkPay secures $5M from Visa to expand its service offerings.

  6.  🪙 Lux Capital made its first investment in Brazil, funding $4M to AI fintech Magie, focusing on financial inclusion.

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Meta and Spotify CEOs Call for Regulatory Reform to Boost Europe's AI Future

EFE

Meta's CEO Mark Zuckerberg and Spotify's CEO Daniel Ek have voiced concerns about Europe's regulatory landscape surrounding open-source AI. They argue that despite Europe's strong base of open-source developers, the continent risks falling behind in AI innovation due to fragmented and inconsistent regulations. 🌍 The CEOs highlighted overlapping laws and unclear guidance stifle growth and could leave Europeans dependent on AI solutions designed elsewhere.

The leaders stressed that Europe needs a streamlined regulatory framework to support its developers and harness the potential of open-source AI. Without more transparent and consistent policies, they warn Europe could miss a significant opportunity to lead in AI innovation.
Read the whole story.

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SaaS Growth Calculator

This is a growth calculator that lets you forecast the impact of your ARPU (average revenue per user) and Churn Rate on the long-term potential of your subscription business.

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Startup Financial Modeling Explained 

See how we turn a complicated Profit and Loss Statement into a precise forecasting tool. This video teaches you to forecast expenses, manage spending better, and build a solid financial model. Learn how to make your business more profitable with free templates and live webinars. Watch now to take charge of your startup's future. Are you subscribed already?