Often, young founders will start businesses in the online dating niche because of their own experiences with more widely known apps like Bumble, OkCupid and Match.com.
Here are the five non-obvious issues I have experienced while reviewing dating companies as an investor.The primary goal of an online dating app or website is to help users find a perfect match. Of course, this means that the best apps have the highest churn rates because they've fulfilled their purpose, and people no longer need their services.
On the surface, this can suck away a founder's motivation to do well at their job of matchmaking. After all, the purpose of any business is to grow and be profitable. To combat this, many new startups are incorporating alternative content such as celebrity webinars, AR features, AI dating assistants, games and even educational videos.Dating apps typically base matches on a user's GPS location. Since most people hope to find a match close by, this makes sense. Companies like Tinder, Badoo and Bumble all operate this way.