TikTok went dark, but it’s back again… for now. 📱

⏰ Midwest Minute 

The social media world has been buzzing louder than a viral TikTok sound. Recently, TikTok faced a temporary ban in the U.S., "going dark" a few hours earlier than its scheduled January 19 deadline, only to be reinstated shortly after. As users scrambled for alternatives, Instagram upped its game, hoping to snatch market share. But the real plot twist? Rednote saw a user surge in the days leading up to TikTok's brush with regulatory doom, proving the short-form video craze isn’t going anywhere.

This shift brings back memories of social media’s evolution: from MySpace’s early dominance to Facebook’s global takeover, each platform has left its mark. TikTok’s 150M U.S. users make it the clear leader in the short-form video space, but challengers like Triller, Clash and—wait for it—Tumblr are ready to dance their way to the top. Rednote’s sudden rise highlights how quickly user loyalty can flip in this fast-paced digital age. Investors and creators are closely watching the scene, with chatter about TikTok acquisitions and funding for new players heating up. However, for users who preemptively deleted the app ahead of the ban, they are still unable to access TikTok. The app remains unavailable for download in U.S. app stores.

As platforms battle for user retention and creator loyalty, one thing’s clear: short-form video is the future of global entertainment. Whether TikTok remains the reigning champ or a U.S.-based alternative seizes the spotlight, this race is far from over. After all, in the world of social media, the only thing that’s constant is change—and the algorithm. Find the latest startup funding below.

Have any insights into the Midwest ecosystem or a funding announcement to share? Want to share your favorite social media trend? Send us an email: [email protected] 

📰 Notable News

Exits

• Cincinnati-based Lisnr acquired Arden for an undisclosed amount

• Milwaukee-based Alinea Engage was acquired by Net Health Systems for an undisclosed amount

Startup Funding

• Saluda Medical - $100M round led by Redmile Group | Minneapolis + Australia

• Flywheel - $20M round from undisclosed investors | St. Louis

• hc1 - $6.1M round led by Health Cloud Capital | Indianapolis

• Kaya AI - $5.3M Pre-Seed led by 53 Stations, Suffolk Technologies and Soma Capital | Columbus

• Stellar - $2.7M Seed led by ground game | Indianapolis

• Qumis - $2.2M Pre-Seed led by Armory Square Ventures | Chicago

• Evertrak - Undisclosed amount of funding from Sumitomo Corp. of Americas | St. Louis

VC Funds

• Vensana Capital - $425M FIII | Minneapolis + DC

• Mastercraft Ventures - Launches with $2.4M from Badger Fund | Beloit, WI

Other News

• Meta lures TikTok creators with $5K bonuses, content deals, free verification

• Mairs & Power VC Invests in a Baker’s Dozen of Startups

• Miami University partners with Cleveland Clinic to ‘shape the future’ of health care, tech

• Anduril Building Arsenal-1 Hyperscale Manufacturing Facility in Ohio

• Quantum tech on the brink of commercial relevance, Illinois quantum park CEO predicts

• Missouri tech hub to share in $210M in federal funding

📆 Mark your Calendar

Need to fill your social calendar? We’ve scoured newsletters, scanned LinkedIn and found some of the latest tech + startup events in the region. Know of any upcoming events and want to share them in our next newsletter? Send us an email: [email protected]