Tag Archives: Tilt

Airbnb acquires Tilt

Commentary

Tilt (formerly Crowdtilt), the digital payments startup that lets individuals to share bills and collect payments from a group, has been acquired by Airbnb for a little over $60 million—a price tag that’s significantly less than its reported valuation of $400 million back in 2015. According to reports, Airbnb acquired Tilt for its product, but not its business. Founded in 2012, Tilt’s free app became a hit among students looking to raise money with friends as well as for splitting the bill. However, the company’s decision to focus on growing its user base instead of revenue has caused it to lose money. The acquisition will give Tilt an exciting new lease on life and allow Airbnb to expand its expertise around group travel.

Funding the crowdfunding sites

Commentary
Raising money through crowdfunding sites is rapidly gaining traction. According to sources, there are now hundreds of crowdfunding sites online, each one determined to get a slice of this fast growing industry. As stated by the Crowdfunding Industry Report by Massolution, an estimated $2.7 billion was raised in 2012, and as much as $5.1 billion was raised in 2013. In addition, according to a 2013 study commissioned by the World Bank, the global crowdfunding market could reach between $90 billion and $96 billion by 2025. To date, platforms like Indiegogo, GoFundMe and Tilt (formerly Crowdtilt) have become the favourite platforms of investors. Last week, previously bootstrapped GoFundMe raised an undisclosed amount of money which now values the company at around $500 million. Tilt, in its most recent funding round, received $30 million at a $400 million valuation. So why are investors enthusiastically getting behind crowdfunding platforms? The answer is simple: the average campaign raise on a crowdfunding marketplace far exceeds the average item price on most consumer marketplaces, meaning commissions generated per item (campaign) are significantly larger. We feel there could be a few large acquisitions, IPOs around the corner within this space.