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TikTok’s New ‘Foundry’ Program Targets Startup Ad Dollars
TikTok launches its "Foundry" accelerator program to attract ad spending from venture capital and private equity-backed startups.
Key Points
- TikTok launches its "Foundry" accelerator program to attract ad spending from venture capital and private equity-backed startups.
- The program offers participating companies up to $15,000 in matched ad credits, dedicated support, and early access to new beta features.
- By targeting VC and PE firms, TikTok aims to efficiently onboard entire portfolios of emerging brands and solidify its position in the digital ad landscape.
- The launch comes as TikTok's ad revenue is projected to top $32 billion in 2025, positioning the platform as a core advertising channel for high-growth brands.
TikTok is chasing the ad budgets of high-growth startups with its new "Foundry" accelerator, a program designed to give venture capital and private equity-backed companies a white-glove on-ramp to advertising on the platform.
The starter kit: Foundry offers portfolio companies a compelling package, including up to $15,000 in matched ad credits, dedicated support from TikTok's own experts, and early access to new beta features. According to TikTok’s own materials, the goal is to "unlock scale, spark creativity, and accelerate growth," giving brands a "head start on the platform where the next big thing breaks first."
Riding the wave: The move is timely, as digital video ad spend is projected to hit $63 billion in 2024, finally overtaking linear TV. By targeting the VCs and PE firms that fund emerging brands, TikTok can efficiently onboard entire portfolios at once, betting on its own research showing that millennial decision-makers—who will comprise 75% of business buying teams in 2024—are already on the platform for product discovery.
Spending money to make money: The program's launch comes as TikTok's ad business is already on a massive growth trajectory, with a recent WARC report projecting global ad revenue could top $32 billion in 2025. ByteDance, which reportedly spent over $10 billion on other social platforms to attract its own user base, understands the investment required for growth and is now applying that playbook to its ad business.
Foundry is a calculated strategy to mature TikTok from a cultural phenomenon into a core component of the digital advertising landscape for the next generation of high-growth brands. The push to formalize its ad offerings comes as major brands are already spending big, with advertisers in the media and entertainment sector alone investing over $1 billion on the platform in a single quarter.
