Us online dating market

15-Feb-2015 05:45 by 2 Comments

Us online dating market - Chatruletesex

But with hundreds, if not thousands, out there, it's tough to get a critical mass of users. " That's what dating industry veteran Sam Yagan -- he founded Ok Cupid in 2003 -- said is most important. (The site is largely free but users can pay to upgrade their services.) In 2011, bought the company for $90 million when it had 1.5 million active users.And that's key to attracting investors and eventually turning a profit. But for the aforementioned apps -- along with Coffee Meets Bagel, Hinge, Happn, Tinder and countless others -- profitability is a long ways off.

Some, like Coffee Meets Bagel, use a "freemium" model, where the basic service is free but additional features can be purchased. (Tinder Plus is expected to roll out in March, but the price structure has yet to be unveiled.) For now, most dating startups are laser focused on growing their user base. The ideas aren't transformative." Yagan, who heads up IAC's The Match Group (which encompasses, OKCupid and Tinder), agreed."I think 10 or 15 launch every week, and at the end of the year, about one or two of them will actually still be up and running," said online dating analyst David Evans. "It's much easier to make a cool and catchy app on mobile -- it looks slick and gets attention," he said."But when you ask how many people logged on today..." And though Coffee Meets Bagel says its matches have resulted in 10,000 relationships and at least 80 engagements, success in love doesn't always equal money.The company, which launched in April 2012, has raised .8 million.The founders declined Mark Cuban's million offer to buy the firm when they appeared on Shark Tank in January.They think the app can eventually generate around 0 million a year, like Meanwhile, venture capitalists are leery of giving any one dating startup too much funding.

While funding to dating firms was up in 2014, the size of the rounds is actually declining, according to data from Priv Co.

And relatively small amounts of funding can't support the hefty marketing budgets needed to acquire more and more users, according to Evans.

Hinge, which raised million in December (for a total of million in funding to date) isn't monetizing its platform yet.

JSwipe, which launched in March 2014, has also caught investors' attention.

"[Investors] understand that our core focus is user growth," said founder David Yarus, who closed an undisclosed round of funding in December.

"We're not making money." The "Tinder for Jews" counts over 200,000 users around the globe, but Yarus, 28, said he'll never charge for the app. "It makes me mad when people try to sell your love." He has "a ton of ideas" for how to monetize the business, but that's not in the immediate future.

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