New online dating startups
While he notes that there are very exceptions to those points (like Tinder and Coffee Meets Bagel), the majority of dating startups are affected.
Here are six reasons why investors don’t fund dating startups: According to Chen, dating startups have churn rates (the rate at which users stop subscribing to or using a product) of 20 to 30 percent.
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.
High start-up costs and constant customer churn are a bit of a turn-off to would-be backers, but some projects have taken online dating to the next level.
By Lila Mac Lellan Photo credit: Simon Dawson/Bloomberg When Match Group, a division of New Yorkbased digital media behemoth IAC/Inter Active Corp, bought online dating site Plenty Of Fish (POF) Media for 5 million in July, smaller dating sites felt encouraged by the Goliath-buys-David tale.
But if concrete data still doesn’t cut it for you, prolific startup advisor and investor Andrew Chen writes in a recent blog post the reasons why dating startups don’t get funded by investors.
According to Chen, there are six primary reasons why investors don’t fund dating startups.