TikTok’s Ban Delayed, But Favorited Steps Up With $1.3 Million Funding

When Donald Trump took office, TikTok's future in the United States was called into question, with the app being blocked one day and then reinstated again. As the ban is now delayed, a new competitor to TikTok has appeared: Favorited. This social livestreaming software, with its gamified, creator-focused features, is promoting itself as an alternative to TikTok, providing creators with various opportunities to engage with their fans and earn money in a fast growing field.

Favorited's recent $1.3 million pre-seed investment round has sparked interest for a number of reasons, not the least of which is the company's ability to catch the attention of investors and influencers in a crowded market. The app, created by David Tesler and Zach Ferraro, borrows from TikTok Live's playbook, but it stands apart by delivering interactive features, live battle, and a revenue-sharing mechanism that may appeal more to creators than anything given by major platforms.

The company's tale begins in 2023, when founders David Tesler and Zach Ferraro collaborated to bring interactive livestreams to life. Tesler, who previously established the anonymous Q&A app Sendit, and Ferraro, who has worked with Curiosity.com, Famous Birthdays, and Fourthwall, set out to build a platform where creators and fans could interact in real time, socially, and competitively. This idea was quickly realised with Favorited, a platform that prioritises live interaction, gaming aspects, and a unique creative revenue model.

Favorited’s approach is distinctive in several ways. The app features a 70/30 revenue split for creators, far more favorable than platforms like TikTok Live, which typically takes a 50% cut. This creator-centric model is one of Favorited's biggest selling points, allowing influencers and creators to earn more from their content. The app also introduces interactive games, leaderboards, and streaks, giving users the opportunity to participate in "battles" and collaborations during livestreams. Anyone with at least 100 followers can create their own streams, while anyone can join existing ones. The gifting feature, similar to TikTok Live, allows viewers to send virtual gifts to creators in exchange for real money, offering another avenue for monetization.