Flattr, the microtipping service from Sweden, has announced it has closed a 14 million Swedish kronor (€1,6 million) investment from Federico Pirzio-Biroli and Passion Capital. The investment values the company now at 88 million Swedish kronor (€10 million). The service allows content owners to attach (and thus accept) micro donations through a simple Flattr -button on their website. A user can tip as many services online during a single month and the amount the user has allocated to be paid out will be evenly distributed all those who received clicks by that user.

According to the company, the investment was closed actually towards the end of last year, but they were only able to announce it today as the proper paperwork was in place.

The investment will be spent on building the team, user growth and customer development. According to Flattr, they won’t be renting any fancy offices in California, but will be focusing on the key markets in Europe: UK, Germany and Sweden. Naturally they will work with the US as much as they can, but the focus is definitely on Europe.

The way Flattr looks to expand to key markets like Germany is through partnerships. Just last week Instacast (podcast app) announced support for Flattr. This way people can flattr specific podcast episodes right from the app without actually trying to find the website to do so.

Another interesting fact is that the Flattr button is now shown around 11 million times a day around the world. Each flattr is on average worth around €0,70, which isn’t bad at all. Taking the mobile app economy into consideration, I’d almost think twice about calling them Flattr payments micropayments.

Flattr has seen its challenges as well. Just a few weeks ago we covered the announcement by the Swedish Supreme Court that rejected the leave to appeal in the case against The Pirate Bay. One of Flattr’s founders, Peter Sunde, is also one of the people that setup Pirate Bay.

Nevertheless, the online payment market is hot with innovation at the moment. iZettle, Klarna and Flattr are just a few names (although all from Sweden), that have aroused investor interest in the amounts of millions. We’re surely going to see positive development in that space in the coming years.

No more articles