OPW – Dating app Once has shifted from offering one curated match per day to operating as a chat and creator platform. The app now sells subscriptions and Gems, which users need in order to send messages and contact “popular” members. Once has a 1.2 Trustpilot rating, with complaints focusing on high messaging costs and allegations of fake or automated profiles. The company denies using fake or AI-generated profiles. Dating Group acquired Once in 2021 in a deal valued at up to $18M.
ICIJ – An International Consortium of Investigative Journalists (ICIJ) investigation alleges that Social Discovery Group dating platforms use models, influencers and engagement targets to keep paying members buying credits. Dmitry Volkov, the group’s founder and CEO, owns Social Discovery Group and related companies including SOL Networks and SOL Holdings. Together, the businesses operate ~60 dating brands, including Dating.com, AmoLatina, DateMyAge, Dil Mil, AnastasiaDate and Cupid Media.
Customers interviewed by ICIJ said they spent thousands of dollars communicating with attractive, verified profiles that repeatedly avoided live calls and meetings. One customer reportedly spent ~$130K. A Colombian model said she was paid for photos and videos but did not operate the profile or communicate with users.
Social Discovery Group denies paying models, employing chat operators or allowing third parties to manage accounts. It says marketing partners may recruit and support free users but cannot pay them or communicate on their behalf. A separate US civil racketeering case alleges that model-based profiles were used to encourage users to buy credits. The case remains unresolved after being referred to arbitration.
SDG says it has suspended payments to an affiliate and commissioned an external investigation, but whether this represents genuine reform or a crisis-management exercise remains to be seen.
VENTURE BEAT – Social Discovery Group is starting SDG Lab, a $20M corporate venture fund that will invest in social discovery startups. Led by former CMO Alex Kudos, SDG Lab will support early-stage companies working on AI communication, VR/AR technology, and social platforms. More than just an investor, SDG Lab offers legal, tech, marketing, and back-office support to help startups scale. The fund has already invested in startups like Flure (safety-first dating app), AstroLove (horoscope-based dating), Kiseki (cross-border dating in Japan), and VR Chat&Date (VR-powered dating).
by Dean Takahashi
See full article at Venture Beat
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This post also appears on InternetDatingInvestments.com
PRESS RELEASE – Social Discovery Group predicts that virtual relationships will play a major role in the future of online dating. They recently introduced 360° VR video chat on Dating.com to simulate real-life interactions, catering to a rising demand for meaningful online connections. Their survey shows 89% of singles are open to relationships this winter, with a third interested in virtual-only relationships.
PR NEWSWIRE – Dating.com, part of Social Discovery Group, is introducing a new VR feature. With this launch, users can now engage in 360° VR video chats with other members, promising a more lifelike communication experience. To access the tool, users are required to have a compatible VR headset. Prior to this feature update, singles were given the option to use video chats within apps. Last year, 3,222,993 video dates were facilitated for users across platforms, which is 1.3M more than in 2022.
SOCIAL DISCOVERY GROUP – Digital avatars are rapidly growing, projected to increase from $19.7B in 2023 to $533.8B by 2032. These virtual personas are becoming essential across various sectors like online dating, gaming, education, and marketing, driven by advancements in AI and graphics. In the online dating sector, SDG Investments' product, Magnet, uses customizable avatars to enable connections based on personality, reducing visual bias and enhancing dating experiences. Key technologies like Apple's Vision Pro and the Second Life Metaverse are further enhancing user interaction with digital content, transforming how we engage online.
PRESS RELEASE – Social Discovery Group has expanded into the Japanese market with the launch of Kiseki, a platform for singles seeking international connections. This move is part of the company's global growth strategy. Kiseki offers features like real-time translation to facilitate cross-border communication. Social Discovery Group, with a portfolio of 70 brands including Dating.com, DateMyAge, and Dil Mil, reported $400M in revenue and significant growth in user engagement in the past year.
OPW – Bill Alena has joined Spark Networks as the new Chief Revenue Officer (CRO), bringing with him a rich background of over twenty-five years in the Dating and Social Discovery sector. Prior to this role, he served as the Chief Investment Officer at Social Discovery Group, where he was a specialist in Dating and Social Discovery, leading corporate development, investor relations, and the corporate venture capital fund.
See the top news on Spark Networks
See the top news on Social Discovery Group
LTR – Dmitry, a seasoned serial entrepreneur and investor in 22 venture funds, including Khosla Ventures and 500 Startups, offered valuable insights during the interview. Remarkably, he embarked on his entrepreneurial journey at the age of 14, establishing his first software company at 21, which impressively grew to encompass 500 employees. He shares how the company focuses on social discovery, connecting people from all over the world, and the unique aspects of their approach. Dmitry also mentions their interest in AI-based social apps and their willingness to invest in companies that align with their values and goals.
Dmitry's entrepreneurial acumen extends to founding one of the world's largest social discovery group of companies, dedicated to addressing issues of loneliness, isolation, and disconnection through the utilization of digital reality. This Social Discovery Group, encompassing ~40 brands, specializes in dating and innovative social and entertainment apps with a focus on AI, video streaming, and game mechanics. Together, these brands boast ~250M registered users worldwide, facilitating ~75M daily messages.
The September LTR was kindly sponsored by ParshipMeet Group, RealMe, along with Courtland Brooks and Matchmaker.com
FORBES – To make your dating app pitch more convincing to VCs, follow these tips:
1. Understand the VC: Research and tailor your pitch to match the VC's preferences and focus areas.
2. Showcase Growth Potential: Emphasize how your app can achieve sustainable and scalable growth.
3. Highlight Value Proposition: Explain your app's unique value and revenue model.
4. Present Realistic TAM: Provide a realistic target audience size, avoiding inflated market figures.
5. Avoid Niche Overload: Find a balance between catering to a niche audience and appealing to a broader market.
