California tech startup once worth $1 billion shuts down

Flip, a California tech startup that rode its TikTok-esque shopping and 
reviews app to a $1 billion valuation in 2024, has now shut down.

The company — headquartered under the name Humans Inc. in El Segundo, per 
its website — scrubbed its main landing page sometime after Aug. 16, per 
Wayback Machine records. Friday, the website featured only a brief message 
titled, “Thank you for making Flip real,” and beginning, “We are saddened 
to share that Flip has shut down.” Flip’s TikTok and Instagram accounts 
have vanished. The Information first reported the company’s shutdown.

The Flip team’s parting message on its website says its “mission now comes 
to a close,” but lists statistics from the app’s run: 16.5 million users, 
5 billion video views, $13.4 million paid out to content creators and $375 
million in sales for brands. The note also offered an email address to be 
contacted by anyone with an outstanding balance — Flip’s app has 
disappeared from the Apple and Google app stores.

Before its closure, Flip blended some tried-and-true features of major 
tech companies. There was a short-form video feed, in the mold of TikTok. 
Users could add products mentioned in those videos directly to a cart, 
like with Amazon. Creators were paid for engagement on their posts, like 
on other social video apps, and users even got product discounts for just 
watching and scrolling. 

“What’s the catch?” the company’s FAQ page said. “Honestly, there isn’t 
one. You post, you watch, you shop — and Flip rewards you for it. Rewards 
get you free products. Creator Earnings get you real money you can cash 
out. That’s really it.”

The company didn’t reveal in the website note why it’s shutting down, but 
the business model of heavily discounting products was raising eyebrows as 
early as 2023, when Flip’s popularity skyrocketed. In April 2024, the 
company topped up its coffers with a $144 million funding round that 
valued it at $1.05 billion, Bloomberg reported at the time. Flip touted 
that valuation in job postings earlier this year.

The “unicorn” status wouldn’t save the company; 16 months after the 
funding round, several Flip workers now have “#OpenToWork” banners on 
LinkedIn. Flip’s shutdown is a familiar indication about the modern 
economy of social video: TikTok and Instagram are absolute juggernauts, 
and any potential upstart has a difficult hill to climb. 

https://www.sfgate.com/tech/article/flip-startup-shuts-down-billion-
21022297.php