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Culver City, California, United States

Industry: Social Media

Region: US 🇺🇸

Founded: 2016

Expected Valuation: $160 billion

IPO Date: 2023 (Expected)

TikTok Inc.

Key Company Facts

HeadquartersCulver City, California
SectorSocial Media
FoundersZhang Yiming
Number of employees8,424 (LinkedIn May 2023)
IPO Date2023 (Expected)
Number of investorsN/A
Total funding$7.4 billion USD
Number of account holders1.8 billion
Valuation estimate$110 to $180 billion USD

Company Overview & History

TikTok is a short-form, video-sharing app that allows users to create and share 15-second videos on any topic. The app was launched in 2016 by Chinese tech company ByteDance for markets outside of China. ByteDance had previously launched Douyin, a similar app for the Chinese market, in 2016.

TikTok rapidly gained popularity due to its unique algorithm that recommends content to users based on their viewing habits, and the app’s easy-to-use video creation and editing tools. In September 2022, TikTok boasted millions of active users worldwide and is available in over 150 markets and in 75 languages.

Financial Performance

TikTok has experienced significant financial growth since its inception. The company’s revenue has consistently increased year over year, from $63 million in 2017 to an estimated $9.4 billion in 2022​​.

The company’s valuation has also seen substantial growth, with ByteDance investors valuing TikTok at about $50 billion in 2020 and an estimated value of between $110 billion and $180 billion in 2023


YearRevenue (USD)
2017$63 million
2018$150 million
2019$350 million
2020$2.64 billion
2021$4.70 billion
2022$9.40 billion

Business Model

TikTok’s business model is primarily based on advertising revenue. The platform offers various advertising options, including brand takeovers, in-feed ads, and hashtag challenges, allowing businesses to reach TikTok’s large and engaged user base.

TikTok also generates revenue through in-app purchases, such as digital gifts for live streamers and coins that can be used for various in-app transactions.

Estimated Valuation

YearValuation (USD)
2018$7.4 billion
2019$17 billion
2020$50 billion
2023$110-180 billion

Risk Factors

As with any tech company, TikTok faces several risk factors. These include regulatory challenges, particularly around user data privacy and national security concerns.

The company has faced scrutiny and potential bans in multiple countries, including the United States and India. Additionally, the platform’s reliance on user-generated content and the associated content moderation challenges present potential risks.

Market Opportunity

Despite the risks, TikTok has a significant market opportunity due to its unique position in the social media landscape. The app’s popularity among younger audiences and its unique algorithm that encourages content virality provide significant opportunities for user and revenue growth.

Furthermore, the short-form video market is rapidly expanding, providing additional growth opportunities for the company.


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