New online dating startups
Here are the reasons usually given for why investors don’t do dating: Let’s break it down.
Built-in churn Churn sucks, and the better your dating product works, the more your customers will churn*.
And that means at 20% monthly churn, it gets very hard to retain what you have, much less fill the top-of-funnel with enough new customers to grow the business. With most subscription products, the more you improve your product, the lower your churn.
With dating products, the better you are at delivering dates and matches, the more they churn!
A similar challenge is that these products aren’t “social” in the same way that Skype or Facebook might be.
This limits the market size as well as restricting the types of marketing channels you can use to read those consumers.
Perhaps they’d make an exception for a breakout like Coffee Meets Bagel (I’m an advisor) or Tinder, but in the main, it’s an uphill battle for dating apps to attract interest.
Here’s some data on the few dating cos that have raised.
This team would need Android, i OS, Web, Facebook and back-end developers, designer, business expert, marketing expert and some money investments which will have company shares.
I'm willing to create a concept, book of standards, all app blueprints, marketing and development strategy and business plan for 10% of company shares.
Obviously, anyone starting a new company in dating should try to understand investor biases in this sector.