TikTok Founders' Journey - The Powerhouse of Short-Form Content

Welcome to our "Founders' Journey" series by CoffeeSpace, where we explore the remarkable stories and cofounder journeys behind the world’s most successful startups.

In this edition, we explore the rise of TikTok, the short-form video platform that has transcended its borders to becoming a cultural phenomenon for digital users regardless of age and nationalities. Since the inception of its China counterpart, Douyin, in 2016, TikTok as the international version of the app, has transformed the way people create, share, and consume short-form video content, establishing itself as a trailblazer in the digital entertainment landscape surpassing conventional entertainment media platforms like Instagram, Youtube and such. Thus, this article delves into TikTok’s founding journey and its pivotal role in shaping a new era of social media content and creative expression.

Early Developments of Douyin and Going Global with TikTok

ByteDance is the parent company that has numerous portfolios across the tech sector and has led to many creations such as Toutiao, the company’s flagship news aggregator app, Capcut, the video editing tool, and later Douyin and TikTok. TikTok's journey is deeply rooted in the vision of Zhang Yiming and Liang Rubo, the cofounders of ByteDance, who sought to revolutionize content consumption through artificial intelligence.

Hence, ByteDance launched Douyin in China as a short-form video-sharing app in September 2016. Designed to leverage AI algorithms for personalized content delivery, Douyin quickly resonated with its Chinese users upon its app release. The app quickly rose to popularity with the platform overseeing 1 billion videos viewed daily within the first year of launching. This is undoubtedly thanks to its most commendable feature, which is its robust algorithm powering the "For You" page, which uses advanced machine learning to curate content tailored to each user's interests and preferences. This algorithm helped get users to retain on the app by feeding them the content that resonated with them. Within its first year, the app achieved remarkable success, amassing over 100 million users. This early traction further demonstrated ByteDance's ability to create an engaging and scalable product.

Having recognised the potential for international growth, ByteDance decided to rebrand Douyin for markets outside China the next year, in which the app would work outside of Chinese regulations to serve global consumers. This strategic move also marked ByteDance's entry to dominate the global social media market with the creation of TikTok. The decision to separate the branding of Douyin (for the domestic Chinese market) and TikTok (for international audience) was aimed to help mitigate concerns about its Chinese origins due to the conflicts of data privacy and international security tension between China and the United States. However, this continues to lead to numerous controversies later on which would be dissected more thoroughly, particularly in the United States, where privacy concerns of users have been a recurring issue.

Acceleration & Growth

In order to scale and iterate more quickly into the global market, Douyin needed a way in. The app was doing well in the Chinese market, but it needed to precisely tap into the market of short-form content on a global scale. Similarly, Musical.ly was a popular short-form video app in the Western market among teenagers, particularly in the U.S. and Europe, known for its lip-syncing and music video features and by 2016, it had over 90 million users and was quickly gaining global recognition. ByteDance saw its potential, and made a move on it. 

The acquisition of Musical.ly by ByteDance in November 2017 was a transformative moment in the history of TikTok, setting the stage for its meteoric rise as a global social media powerhouse. The company acquired the app for approximately $1 billion, which looking back, was a strategic investment aimed at accelerating its global ambitions. With a user base of 100 million monthly active users, Musical.ly had already carved out a niche in the competitive social media landscape. ByteDance recognized an opportunity to leverage this success to expand its own short-form video platform, Douyin, into international markets under the TikTok brand. The acquisition also provided ByteDance with an established foothold in Western markets where Musical.ly was thriving. This move was not just about acquiring users but also about integrating Musical.ly’s creative features—such as lip-syncing tools and music-driven challenges—into TikTok’s advanced AI-driven platform. By combining the strengths of both platforms, ByteDance created a unified app that appealed to a broader demographic and offered enhanced content discovery through its personalized “For You” feed.

In August 2018, ByteDance officially merged Musical.ly into TikTok, effectively retiring the Musical.ly brand while TikTok inherited Musical.ly’s loyal user base and introduced them to TikTok’s more personalized content offerings and innovative features within the app. The merger has also allowed TikTok to capitalize on Musical.ly’s cultural relevance among younger audiences while broadening its appeal to all age groups with different demographics surging onto the app to discover their own niches. Within months upon the merger, TikTok has risen to become one of the most downloaded apps globally, surpassing 500 million monthly active users by late 2018.

However, the acquisition also brought forward challenges and controversies. In 2019, ByteDance faced scrutiny from the Committee on Foreign Investment in the United States (CFIUS) over national security concerns related to the deal. U.S. regulators questioned whether ByteDance’s ownership of Musical.ly’s assets posed risks to user data privacy and potential Chinese government interference. And this is only the first question to arise for TikTok to answer among other controversies that the app has stirred in its global communities. However, despite the challenges, TikTok’s Musical.ly acquisition proved to be pivotal in establishing TikTok as a global phenomenon, blending creative spirit with ByteDance’s technological innovation to redefine short-form video entertainment on a worldwide podium.

Controversies in Content Moderation, Privacy, and Legal Challenges

As TikTok rises to become a global social media platform, it is not without its challenges, facing significant controversies surrounding content moderation, data privacy, and legal compliance. These issues have sparked ongoing debates about the platform’s responsibilities to both users and governments, especially in the United States and other Western markets. Let us dive deeper into each of the major controversies that TikTok has faced in its journey of navigating the complex intersection of technology, regulation, and public trust.

1.  Content Moderation & Censorship Allegations

TikTok has faced repeated accusations of suppressing political content critical of the Chinese government, raising concerns about censorship and freedom of expression. In November 2019, TikTok blocked a video by Feroza Aziz that highlighted human rights abuses against Uighur Muslims in Xinjiang. Disguised as a makeup tutorial, the video gained over 1.5 million views before being removed, sparking widespread criticism. TikTok denied that the removal was politically motivated, attributing it to a “content moderation mistake,” but the incident fueled suspicions about its ties to Chinese state interests.

Similarly before that, TikTok was criticized for allegedly censoring content related to Hong Kong pro-democracy protests in September 2019. Leaked moderation guidelines revealed that TikTok instructed moderators to suppress topics sensitive to the Chinese Communist Party (CCP), including Tiananmen Square and Tibetan independence, categorizing such content under sections like "hate speech and religion," effectively limiting or removing videos that touched upon these topics. The company claimed that the earlier approach aimed to minimize conflict on the platform but acknowledged the need for more localized and nuanced moderation policies . Despite these assertions, concerns persist about the platform's transparency and the potential for ongoing censorship aligned with Chinese government interests. These revelations have raised questions about whether TikTok’s policies align more with CCP directives than with global standards for free speech. Despite claims that these guidelines are no longer in use, concerns persist about shadow banning and selective enforcement of moderation rules.

2.  Privacy & Data Security Concerns

TikTok’s data collection practices have also been another major point of contention. With millions of users logging onto the platform and interacting with content daily, TikTok has been able to gather extensive user data, including location, mobile device information, and browsing behavior, leading critics to question whether this data could be accessed by the Chinese government due to ByteDance’s headquarters in Beijing, China. These concerns have further prompted investigations and bans in several countries.

TikTok has faced legal action for violating children’s privacy laws. In February 2019, the Federal Trade Commission (FTC) fined ByteDance $5.7 million for illegally collecting data from children under 13 without parental consent, which is the largest civil penalty for a children’s privacy case in U.S. history. This case underscored broader concerns about how social media platforms handle sensitive user data.

Following controversies that sparked, India banned TikTok along with other Chinese apps, citing national security risks in June 2020. The decision cut off TikTok’s largest international market, where it had over 100 million users. Similarly, in August 2020, former U.S. President Donald Trump signed an executive order requiring ByteDance to sell TikTok’s U.S. operations or face a nationwide ban. Although federal courts blocked the ban, the incident highlighted growing fears about TikTok’s potential misuse of user data for surveillance or influence campaigns, which are further discussed later in the article.

More recently, TikTok CEO Shou Zi Chew testified before the U.S. Congress to address concerns about transparency and its relationship with the CCP in March 2023. Human Rights Watch urged Congress to push for greater accountability from TikTok regarding its algorithms and moderation practices. The hearing underscored the bipartisan anxiety over national security risks and the influence of foreign governments on widely-used digital platforms. In response, Chew emphasized TikTok’s efforts to separate its U.S. operations through initiatives like “Project Texas” which aims to store American user data on servers managed by U.S.-based Oracle. Meanwhile, Human Rights Watch and other advocacy groups urged Congress to demand greater accountability from TikTok, particularly regarding how its recommendation algorithms function and whether its moderation practices are aligned with free speech principles. These developments have fueled broader debates around platform governance, digital sovereignty, and the future of internet regulation in the United States and beyond.

3.  U.S. Politics & Ban 

The story of TikTok in the United States is a multifaceted narrative of technological innovation, national security concerns, and legal battles. From its early days as a social media sensation to its current status as a focal point of geopolitical tensions, TikTok has faced unprecedented scrutiny. This essay explores the timeline of events leading to the U.S. ban on TikTok, examining the key milestones and implications of this decision.

The Trump administration first raised concerns about TikTok in 2020, citing national security risks due to its Chinese ownership. In August 2020, President Donald Trump signed an executive order requiring ByteDance, TikTok's parent company, to divest its U.S. operations or face a ban. This move was motivated by fears that the Chinese government could access sensitive user data through ByteDance. Microsoft and Oracle expressed interest in acquiring TikTok, but no deal materialized. The ban was temporarily blocked by a court injunction, and the Biden administration later reversed the order in 2021.

Despite the reversal, TikTok continued to face intense scrutiny. In January 2023, the company proposed "Project Texas," a $1.5 billion initiative to store U.S. user data on Oracle servers and establish a subsidiary to manage operations. This effort aimed to alleviate security fears by ensuring that data would be stored domestically and managed independently. However, Congress remained unconvinced, and skepticism about TikTok's ties to China persisted.

In March 2023, CEO Shou Zi Chew testified before Congress, defending TikTok's data practices and downplaying its connections to the Chinese government. Despite his efforts, lawmakers remained skeptical, and the push for legislative action continued.

In 2024, Congress took decisive steps toward banning TikTok or forcing its divestment from ByteDance. The House of Representatives passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), requiring ByteDance to sell TikTok within six months or face a ban. The Senate followed suit, passing a foreign aid package that included provisions for banning TikTok unless ByteDance divested its U.S. operations. President Joe Biden signed the bill into law on April 24, setting a deadline of January 19, 2025, for compliance.

TikTok responded by filing a lawsuit challenging the law as unconstitutional, arguing it violated free speech rights and amounted to unlawful property seizure. However, these claims were rebuffed by federal courts, paving the way for enforcement.

As the January deadline approached, TikTok voluntarily suspended services in the U.S., informing users that the app was banned under federal law. However, upon his inauguration on January 20, President Donald Trump issued an executive order delaying enforcement of the ban for 75 days while pursuing potential solutions. This move was followed by another extension in April 2025, pushing the deadline to June 19. These actions reflect ongoing efforts to balance national security concerns with the economic and social implications of a full ban.

The U.S. TikTok ban reflects broader geopolitical tensions between Washington and Beijing over technology and data security. With over 170 million American users impacted, the ban has sparked debates about freedom of expression, economic implications for creators and businesses reliant on TikTok, and the precedent it sets for regulating foreign-owned platforms in the digital age.

The Battle for Short-Form Supremacy Today

As the social media landscape continues to evolve, TikTok finds itself at the forefront of a competitive battle for dominance in the short-form video space. In response to TikTok's success, platforms like YouTube and Instagram have integrated their own short-form formats, like shorts and reels. Let's look at TikTok's advantages, disadvantages, and strategic positioning in 2025 to see how it stacks up against these rivals.

With a substantially higher engagement rate than its rivals, TikTok continues to be the clear leader in short-form video virality. TikTok's algorithm is still very good at delivering content to highly engaged audiences in 2025, which makes it perfect for brands looking to generate buzz and run campaigns that follow trends. More than 55% of its users are under 30, which contributes to its youthful demographic.

Instagram Reels has emerged as a formidable competitor, leveraging its broader user base and seamless integration with Facebook's ad ecosystem with Meta. While TikTok excels in virality, Instagram Reels drive higher conversion rates for e-commerce brands, thanks to features like shoppable tags. Instagram's diverse content formats and older demographics make it a strong choice for brands aiming for long-term brand building and sales-driven campaigns.

YouTube Shorts, with its massive user base of 2.7 billion, has become a significant player in the short-form video market. Although YouTube faces challenges in engagement, with a drop in commitment rates despite increased views, it remains the benchmark for video content. YouTube Shorts' ability to leverage its vast existing audience and content library positions it as a strong contender in the battle for short-form supremacy.

Today, TikTok continues to thrive among younger audiences, distinguishing itself with a focus on viral trends and rapid growth—making it ideal for brands aiming to generate top-of-funnel buzz. In contrast, platforms like Instagram and YouTube, with their broader demographics and diverse content offerings, are better suited for driving mid- to bottom-funnel engagement, such as conversions and sales. The widespread adoption of short-form video has created a dynamic landscape where each platform plays a unique role, compelling brands to tailor their strategies accordingly. Despite ongoing challenges like privacy concerns and regulatory scrutiny, TikTok’s powerful algorithm and youthful user base help maintain its edge. Its position today still reflects both its adaptability and innovative spirit, but the future and more long-term success is dependent on its ability to balance virality with sustained user engagement amidst evolving trends and rapidly iterating competition as well.

Founder lessons 

Leverage Technology to Personalize User Experiences

At the heart of TikTok’s success is its AI-driven recommendation algorithm, which powers the “For You” page. This algorithm analyzes user behavior to deliver highly personalized content, creating an addictive user experience. In the era of personalization, the importance of leveraging technology to understand and cater to their audience is undeniably necessary to capture the attention of users, maintain user retention and reduce churn. Personalization fosters deeper engagement and builds loyalty, as users feel that the product is tailored specifically for them.

‍Focus on Community Engagement

TikTok’s success is also rooted in its vibrant community of creators and users who drive trends and content virality. By actively engaging with its audience through challenges, duets, and interactive features along with new formats that the app has pushed out, TikTok has built a sense of belonging among its users while keeping the platform fresh and engaging. Founders should prioritize community-building efforts to create loyal advocates for their brand.

Let the Product Speak

Unlike many Silicon Valley startups where founders become the face of the brand, TikTok’s and ByteDance cofounders Zhang Yiming and Liang Rubo took a different approach with their products, avoiding public feuds or personal branding efforts in relation to their products. This humility created space to focus purely on building a world-class product, scaling rapidly without the distractions of ego or internal conflict. By letting the product speak for itself, TikTok showed that true leadership and progress may sometimes mean personal fame and glory taking the backseat and prioritizing the mission over individual recognition.