TikTok sets up $200M fund, seeks creators of app videos

TikTok said last week that it’s establishing a $200 million fund to help promising U.S. creators make original content for its video streaming app.

The money would go to people hoping to make a living by creating TikTok videos. Qualified creators will consistently post original videos and in return get payments from the fund.

“As our community continues to flourish, we’re committed to fostering even more ways for our creators to earn livelihoods by inspiring joy and creativity,” wrote Vanessa Pappas, general manager for TikTok U.S., in a blog post.

The incentive comes after U.S. government officials said they are looking to ban the popular app due to security concerns. The social video sharing platform’s parent company is technology business ByteDance, which was founded in China.

TikTok says data for U.S. users is stored in the U.S. and Singapore and it believes protecting the privacy of its users’ data is of “the utmost importance.”

“We have not, and would not, give it to the Chinese government,” the company said in a statement.

Still, some of its users, including popular video game player Tyler “Ninja” Blevins, said they had deleted the app because of privacy concerns.

“Hopefully a less intrusive company (data farming) that isn’t owned by China can recreate the concept legally, such funny and amazing content on the app from influencers,” Ninja tweeted on July 9.

TikTok has plans to rapidly expand in the U.S., adding thousands of staffers over the next three years.

The company currently employs roughly 1,400 people in the U.S. and moved into a larger office space in Culver City, Calif., earlier this year.

TikTok has seen huge user growth, boosted by people sheltering at home looking for ways to entertain themselves. Its short, viral videos have been embraced by music artists and Hollywood stars. The app has also emerged as a new way for aspiring performers to gain a spotlight on their music and dance performances.

In May, TikTok named Kevin Mayer, a former Disney executive, as CEO.

The new $200 -million fund is the latest initiative by TikTok to help creators. For example, TikTok also has a $50 million creative-learning fund to support educational content.