Why Investors Hate Dating Apps
Although dating is a global problem, investors generally don’t invest in dating apps for a few simple reasons.
**This piece first appeared on johnsonkhoo.com. You can find more related stories and articles on his 10 year journey to build ASEAN’s first world-changing start-up that would help everyone in this world find true love and build lasting romantic relationships here.
Dating is a global problem everyone faces, and is often one of the first problems entrepreneurs would think of solving when they are starting their first business.
However, investors generally don’t invest in dating apps for a few simple reasons.
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Online Dating Today Is A Stupid Business
The main reason why investors don’t really invest in dating apps is because online dating as it exists today is a stupid business.
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The Better You Are At Matching People — The Faster They Leave
The way online dating is done today, the better you are at matching people, the faster your users will leave. Just imagine if you are single today, you use a dating app and found your soulmate, you can’t use the app anymore because that would be cheating.
The better you are at matching people, the faster your users would leave.
Resulting In High Churn — High Costs Of Acquisition — Low Customer Lifetime Values
Naturally, this results in a high churn rate, high costs of acquisitions and a low customer lifetime value, because you would need to keep finding new users as they leave.
It’s Like A Restaurant That Can Only Serve A Customer Once — Stupid
That’s like having a restaurant that can only serve a customer once and have no returning customers. You will have to keep getting new customers.
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7 Famous People And Startups That Started Or Started As Dating Apps
That’s Why Many Dating Apps Try To Milk As Much Money From You As Possible
In order to be able to survive, dating apps today are forced to milk as much money from their single users as possible in the short time that they are still single.
Most Investors Have Lived Past The Problem And Can’t Relate
When most people become rich enough to become investors or venture capitalists, they are usually past their dating age and already married, that’s why there is also usually a mismatch in timing between investors and founders because investors have lived past the problem and have either a bleak view on dating or can’t relate to the problem as much.
Many Have Tried & Failed — Because They Did It The Wrong Way
It might surprise you that many founders and venture capitalists have actually tried to start a dating app or have friends who tried to do that during their younger days and failed. Their past failure tells them that dating can’t really be solved or the best you can do is what Match Group and Tinder are doing now and can’t get any better.
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That’s a big mistake, just because many have tried and failed does not mean that no one will eventually solve dating thoroughly.
Things change, technology improves, society’s behaviour evolves and many of those who tried and failed tried to solve dating the wrong way.
But Online Dating Is Still A 2 Billion USD A Year Business As It Exists Today
Even with the stupid and inefficient way dating is solved today, online dating is still a 2 billion USD a year business simply because dating is a fundamental human need.
Match Group generates close to 2 billion USD a year from online dating and has a market capitalisation of about 22 billion in 2019.
Dating Is A Fundamental Human Need Everyone In The World Faces
This is because no matter where you are in the world, you crave to have someone you can grow old together with as a companion and life partner.
It is human nature. We spend a huge part of our lives finding the right life partner when we are single, plenty of time getting to know each other better while dating and a lifetime together once we are married.
Dating is a fundamental human need everyone in the world goes through.
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Online Dating Is A 100 Billion USD Dollar Opportunity Investors Are Missing
Whoever manages to solve dating thoroughly and become the last and the best dating app in the world would be conquering a market that is at least worth 100 billion USD.
It would be something that everyone in the world would use every single day to meet all their relationship needs, from finding the right partner when you’re single to finding interesting couples activities to do on weekends once you are married.
Dating Just Needs To Be Solved The Right Way — Wowwwz Can
No one has solved dating thoroughly yet because no one has a deep enough understanding to introduce people to not just any partner, but the right life partner who has compatible values and interests as you whom you can live happily ever after with and help you build a long and lasting romantic relationship.
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Dating just needs to be solved the right way, maybe a start-up like Wowwwz will be the one to eventually solve dating thoroughly and help everyone in this world find their one true love and live happily ever after.
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I hope you will help me out a little here so that I can build the tools to help everyone in this world find their soulmate whom they can grow old together and live long happy lives with.
If you have access to a brand, company, working building, community or even VCs, let me know; I can help you build a community of people who like your product or brand and introduce them to each other, or bring a community closer by introducing people at the same building or company to each other!
You can reach me at johnson@wowwwz.com or LinkedIn.
Don’t forget to SHARE this story and all related stories to as many of your friends too, we need to more people to spread the word so we can start a positive paradigm shift in our ecosystem.
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Help me out, because many people’s lifetime happiness is in your hands.
Once you’ve downloaded the app and signed up, you can also start to meet other amazing single people in Kuala Lumpur or Singapore who share the same values and interests as you by scanning the QR codes below.
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The world needs YOUR HELP so all of us can find true love!
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