Contributed by: RedheadWriting Saturday, July 24 2010 @ 12:57 pm
Popular online dating site eHarmony.com is catching the eye of more than just those looking for love - venture capital firms are falling in love with the online dating site. With revenues expected to exceed the $250 million mark in 2010, it's one of the fastest growing online dating properties on the web.
Match.com and eHarmony represent the largest audiences for online dating. Match hold just over 35% of the market and eHarmony hovers at about 20%. Audiences for both continue to grow, with Match staying ahead for it's eHarmony-like sister site, Chemistry.com's features.
Business is solid for eHarmony, however. They've raised over $110 million from Sequoia Capital, Technology Crossover Ventures and Fayez Sarofim & Co and are not looking for any more funding. There's no real talk of an IPO, but growth remains steady and that keeps venture capitalists in love with this innovative online dating property.
What will likely be the turn of events as eHarmony continues its forward surge? Acquisition by another online media giant. Potential suitors like AOL are considered likely as they have the balance sheet to support a successful purchase effort. Others like Yahoo! Don't figure into the mix, especially following their outsourcing of their Personals service to Match.com. Google is also unlikely as its growth efforts have taken them more towards developing their own platforms as of late than acquiring others.
It's the business of love, and we all contribute to its profitability. The upside for these business owners and VC firms? Once the people reading this article find love, there's always someone right behind you who is still looking. They've found a way to monetize the search for love, creating a business model that's sure to thrive so long as people can still say the words, "I do."