BUSINESS INSIDER – July 31 – In June, IAC announced that it would pursue an IPO for less than 20% of common stock of The Match Group which includes Tinder, Match, OKCupid as well as The Princeton Review. Analysts at Bank of America Merrill Lynch valued Tinder at $1.35B. But using the average of peer subscription services, BAML says a bullish scenario could result in Tinder revenue of $250M and a $3B valuation. They estimated a value of $27 per user for the app’s 50M users — thus leading to a valuation of $1.35B. However, they added that this estimate is below the $33 per user Facebook paid for Instagram, and the $42 per user they paid for WhatsApp. Analysts at Oppenheimer estimated that Tinder’s US paid user base grew 80% from Q1, while it’s international paid users grew 70%. Tinder could have ~500K paid subscribers.
Category: Outlets – Business Insider
How Match.com’s Founder Walked Away With $50K
BUSINESS INSIDER – July 15 – In 1994, when only ~5% of Americans had Internet, Gary Kremen took a $2,500 advance on his credit card to buy the domain name Match.com. Today, Match is one of the most-visited dating sites in the country. According to comScore, it attracted ~6M unique visitors in May 2015. 2 years after founding the company, Kremen walked away with just $50K. In 1993. Kremen was paying $2.99 per minute on 900-number dating services. He found it inefficient so he founded Electric Classifies, an online personals database. Late in 1994, he secured ~$1.5M in funding. Match went live in April 1995. Deepak Kamra, the lead VC at Canaan Partners responsible for the Match investment, said the early content was “borderline porn.” The VCs had serious doubts about Kremen’s management skills. They removed Kremen from the CEO post in mid-1995.
Ashley Madison Reconsidering London IPO
BUSINESS INSIDER – July 4 - Ashley Madison revealed that it could abandon its London IPO, which was estimated to raise £135M ($200M) because it has potentially found a "better option." "We don't want to rush and make a mistake, but we are looking to commit to a decision around August," said Noel Biderman, CEO of Avid Life Media which owns Ashley Madison.
by Lianna Brinded
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HeyLets Startup App Wants To Cure Boredom
BUSINESS INSIDER – May 20 – After establishing online furniture site Zanui in Australia, founder Dean Kelly went to San Fran and met his future business partner, Justin Parfitt, who at the time was working on high-end speed dating events called Fast Impressions which he later sold to POF. They launched HeyLets after they wondered why they were reading negative reviews about experiences from people they had nothing in common with. The founders recently closed $1.65M in seed funding from Blue Sky Ventures and a handful of angel investors. The app startup is aiming to raise its series A round in the next three to six months. There have been ~100K downloads to date and an Android version is on the way. Built for mobile, users upload a photo and 200 characters about an experience they enjoyed, rather than a review of a place so it focuses on recommendations.
Happn Wants To Reach 10M Members This Year
BUSINESS INSIDER – May 18 - Happn is a new app that shows users other users with whom they've physically crossed paths with throughout the day. Happn's founder and CEO says it's all about replicating the serendipity of real life. Happn got its start in Paris, but has since expanded to 3M registered users in London and New York City. The app has raised ~$8M, and expects to reach 10M members by the end of this year.
Tinder Would Be Worth $1.6B As A Standalone Business
BUSINESS INSIDER – Apr 2 – JMP Securities analysis says that Tinder would be worth ~$1.6B as a standalone business, 20% of IAC's market cap. JMP is also optimistic about the number of users who will start paying for Tinder. It says that monetisation from Tinder could become 5% of IAC's revenue in 2016, bringing in $121M from subscriptions. JMP also predicts that 2.2% of Tinder users will pay for Tinder Plus by 2016. Tinder could bring in $70M in ad revenue by 2016.
The Inner Circle – EU Equivalent To US App “The League”
BUSINESS INSIDER – Mar 25 – London dating app and website "The Inner Circle" bills itself as a platform for "high-end" community. The Inner Circle has a strict invite-only policy that includes a thorough screening upon registration. The site just launched in London after setting up in Paris, Milan, Barcelona, Stockholm and Amsterdam, where it was founded. So far, 50K people have been approved; there's a waiting list of far more.
The League’s Has Now 100,000 People On The Waitlist
BUSINESS INSIDER – Mar 4 - The League is a new, exclusive dating app that only lets in the "most interesting" singles. The only way to get in is by applying to a long waitlist that's approaching 100K people, or with a VIP pass from someone who's already a member. A League member or employee recently posted a listing on Craigslist, offering a VIP ticket for $100. The listing has been pulled by the company. The app raised $2.1M.
The League: The World’s Most Exclusive Dating App
BUSINESS INSIDER – Feb 26 - The League is a new dating app that uses its own algorithm to judge whether members are cool and ambitious enough to join. Right now it's in beta stage, so not everyone can get into it. Current members have all been carefully selected by creator Amanda Bradford's team using the code. It's predominantly populated by doctors, lawyers, and tech execs. What sets The League apart from its counterparts is its reliance on LinkedIn to determine user credentials. The League just raised $2.1M in funding. It's soon to expand to New York and there are plans to move to London too.
Happn, The Dating App That ‘Takes Stalking To A New Level’
BUSINESS INSIDER – Feb 10 - Happn is the latest addition to the app-based dating scene. It secured $8M, and now boasts ~2M downloads and 700K active monthly users. Around a third of those are in London. Happn uses GPS to connect users who cross paths within a 250 metre radius. There’s no swiping. If users want to grab someone’s attention they can send a “charm.” A small fee is involved for men who want to send out charms. Happn is already in Paris, London, New York, Sydney, and parts of South America, and the team wants to see it expand internationally in the next year or so.