Bitcoin micropayments startup Tibdit has raised £122,080 in seed capital through a crowdfunding campaign.
Founded in September 2013, the London firm lets users send bitcoin tips or ‘tibs’ between 3p–75p to content producers.
As a result of the raise, which took place on equity crowdfunding platform Seedrs, 161 investors will receive 15.03% equity in the firm.
Speaking to CoinDesk, Tibdit co-founder Justin Maxwell said the company’s decision to use Seedrs reflected the “democratic” ethos of its business.
“Micropayments made via Tibdit are inherently very ‘democratic’, providing an opportunity for everyone whether they are the online equivalent of buskers [or] mainstream content providers.”
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.
“We have identified a number of sectors where tibbing can be of real value and has a really good fit, and are prioritising these now,” Maxwell said.
Access payments
Bitcoin micropayments have been largely popularised by tipping platform ChangeTip, which markets itself as a ‘love button’ for social media platforms including Twitter, Reddit and SoundCloud. Back in December, the firm raised $3.5m seed funding from investors including Pantera Capital and 500 Startups.
Unlike its competitor, WordPress plugin Tibdit facilitates both tips and ‘access payments’, where users can pay to view content beyond a publisher’s paywall.
As the publisher, or ‘tibbee’, cannot see the value of each transaction, Maxwell said they are “forced to treat ever tibber equally”.
While ad-hoc tipping models like Changetip have had some success with bitcoin, he added, there is still work to be done to rethink micropayments:
“Advertising-swamp, click-bait, and subscription-paywall-popups are encroaching further and further into our online experiences. The need for a viable alternative that really works for both commercial and non-commercial sites has never been greater than it is now.”
Correction: A previous version of this article stated users could send tips of between £3 and £70.
Money saving jar via Shutterstock