Gay

The business of online dating continues to grow, as more apps enter the market and compete for funding from investors ready to cash in on the next Tinder. The latest financial news in the industry involves popular gay dating app Grindr, who just announced that Chinese online gaming titan Beijing Kunlun Tech has taken a “majority investment” in their app.

According to The New York Times, Beijing Kunlun’s stake in the company will be about 60%, with the remainder to be owned by Grindr employees and Joel Simkhai, the company's founder. The valuation of Grindr seems to be about $155 million according to the same article, although the actual amount invested was not disclosed.

Interestingly, Grindr had not raised capital from outside investors prior to their deal with Beijing Kunlun. The company was started and funded by Simkhai himself, who began with only a few thousand dollars. He grew the company and the brand: according to PC Magazine, the average user spends up to 54 minutes a day on the app – a figure that exceeds Facebook’s 42 minutes and Instagram’s 21 minutes.

According to leaked documents back in August, Grindr predicted pulling in about $38 million for 2015.

According to Financial Review, Carter McJunkin, chief operating officer of Grindr said in an interview: "We have users in every country in the world, but in order to get to the next phase of our business and grow faster, we needed a partner," McJunkin added that the relationship made sense for Grindr because of Beijing Kunlun's digital expertise, and because the company agreed to let Grindr's founders continue its operating structure and retain its current team.

Beijing Kulun saw Grindr as a good opportunity to expand beyond its core gaming focus, into more of an overall “lifestyle” brand. 

It’s interesting to note that Beijing Kunlun’s choice to purchase stake in a gay dating app seems incongruous, since homosexuality is still a taboo subject in China, and many gay people face widespread discrimination. It is not clear if Grindr intends to expand its business into the Chinese market, but there would be social stigma to overcome.

Beijing Kulun might see Grindr as a sound investment above all, despite its target market. Or perhaps they are paving the way for other Chinese investors to expand and reach out to invest in more diverse, successful brands outside of China. "We have been very impressed by Grindr's progress to date and are extremely excited about the future of the company," Yahui Zhou, chairman of Kunlun, said in a statement. "We will continue to seek out and invest in high-quality technology companies led by top-tier management across the globe.” For more information on this gay dating app you can check our our Grindr Topic.

Infamous hookup app Grindr may quietly be looking for a hookup of its own: a hookup with a buyer.

Word on the street is that the LA-based company has hired Raine Group LLC to advise on a possible sale. Bloomberg reports that “the sale process is early and no deal is assured,” so for the moment Grindr is keeping details under wraps.

Joel Simkhai founded Grindr in 2009 with $5,000. Since then, the explosively popular app has gained more than 5 million users in 192 countries. It claims to be the biggest male mobile social network in the world, and has become a bona fide pop culture phenomenon.

Oddly, despite its meteoric rise to the top of the gay dating app heap, Grindr remains self-funded with no outside investors. Revenue comes from a premium subscription service called Grindr Xtra, a paid upgrade that offers increased functionality and eliminates advertising for $12 per month.

In 2011 Simkhai launched Blendr, a dating app for both men and women that uses similar geolocation technology. So far it has yet to soar to the heights reached by its predecessor.

The problems Grindr and Blendr currently face are not unique. The dating industry is massive and cutthroat. Research by IBISWorld found 3,924 dating services in the US alone, which add up to revenue of about $2 billion. Competition is in ample supply, and it isn't easy for paid services to go head-to-head with free options.

The business model itself offers a special set of challenges. Dating services struggle to retain customers and sustain revenue growth for an amusingly obvious reason: because ideal use of the service means no more need of it. A success story ends in finding love, settling down, and never needing to date again.

A short-term solution to the problem, at least for Simkhai himself, is a sale. IAC (InterActiveCorp) could perhaps be a likely buyer, as it controls the majority of the online dating market in America through ownership in platforms like Tinder, OKCupid, and Match.com. Grindr would be a powerful addition to IAC's already-powerful lineup.

It is not known how – or even if – a sale would impact users, but it's probably safe to assume drastic changes aren't on the way for an app that's already had so much success. Although with more money and muscle behind it, who knows how much growth could be in store for Grindr?

Across the board, so-called “hookup apps” have a certain reputation. It's right there in the name. While plenty of singles use dating apps like Tinder to find actual relationships, popular perception skews in a much more sensationalized direction.

No group falls victim to that melodramatic media coverage more than the gay community, who constantly catch flack for the use of Grindr and similar apps. The common refrain is that these applications encourage risky sexual behavior and exist only for easy, no-strings-attached gratification, but a new study may have people rethinking that narrow-minded assumption.

Garrett Prestage, associate professor of sociology at the University of New South Wales’ Kirby Institute, says 80% of gay men now find their boyfriends through apps and dating websites.

According to his research, published in AIDS and Behaviour and backed by the National Health and Medical Research Council and LaTrobe University, showed that only 14% of gay men met their partners online in 2001. Fourteen years later, things are drastically different.

Today, the numbers of gay men who meet long-term partners at bars, at sex-on-premises venues, and through friends have dropped dramatically, and the changing landscape of gay dating is forcing safer-sex campaigners to rethink their strategies and assumptions.

It's long been said that men who using dating sites or mobile apps are at a higher risk than men who do not, but Prestage casts doubt upon any studies that seem to confirm that theory. “This data show that this is faulty logic because most gay men meet partners this way… be that romantic or sexual,” he says. “If they’re comparing it with men who don’t use apps they’re comparing men who are sexually active with those who are not.”

Prestage adds that “the myth that an online hook up is only just about sex” could mean that health organisations using apps and websites for HIV prevention outreach could be falling short of their goals.

“A more sensible approach is simply to accept that men are more likely to meet via online methods these days and make sure that there are appropriate online interventions and information,” he argues.

A more effective tactic would be to target specific users based on what they're looking for, providing different messaging for men looking for relationships and men looking for casual sex. Ultimately, while apps can certainly help increase awareness around sexual health campaigns, they aren't a sufficient strategy for serious engagement.

Health organizations must adapt to the changing landscape of gay dating if they want to remain relevant and engaging.

I am not sure if this is the right type of publicity a company wants but the Gay dating app called Grindr is being blamed for the rise of sexually transmitted diseases (STDs). The Christchurch Sexual Health Clinic in New Zealand has been quoted as saying that these type of apps which allow Gay men to find others nearby have been associated with a 50 percent increase in cases of Syphilis in 2012.

Globally Syphilis has been making a comeback in recent years. It is recommended that you always use protection. In fact Grindr has a policy which bans its members from looking for unprotected intimate encounters. If a member violates this regulation their profile will be removed.

For more on this story you can read The New Age.

I'm blessed with a wide variety of friends. Straight friends, gay friends, bi friends, transgendered friends, transsexual friends. Not only are they great people, but they give me a glimpse into their worlds, especially when it comes to online dating. In this article, I want to specifically address the concerns of bisexual men in the online dating world.

Some people will argue that there's "no such thing" as bisexual men - that as soon as a man is with another man, he becomes gay and that is that. (Funny how women can be bi and that's perfectly acceptable, if not lauded!) It's a pretty narrow-minded view, but if it's yours, go ahead and click through to another article. There's nothing to see here for you.

As a bisexual man, you're dealing with narrow-minded people, both male and female. There are women who are just as weirded out by the idea of a bisexual man as men are. In fact, I have a friend who hides his bisexuality from his wife. He doesn't act on it, but he dated men before they met and continues to fantasize about men to this day. But he loves his wife and is very much attracted to her too. He keeps his bi tendencies under wraps because he'd rather not risk losing her.

One of the biggest complaints I hear from bisexual men who list their sexuality honestly on their dating profile is that they get plenty of attention from men (both gay and bi) but hardly any emails from women. This may not be a huge problem if you don't mind dating men, but if you're feeling the pull toward the fairer sex, the pickings are slim.

Oftentimes, what works to overcome this issue is posting two dating profiles - one as a gay man and one as a straight man. This works very well on free sites, but obviously will cost you double if you are on a paid site. (I've never tried it before, but I'm thinking you may even need a different credit card to register two paid profiles.)

Since gay men aren't going to be searching for straight men (usually!), your alter ego won't show up in their searches. Since straight women aren't going to be searching for gay men, they won't find your gay side. You're still bisexual, but a little more separated than usual. Is it deceptive? A little. But you are straight AND gay, so it's not entirely a lie.

Any bisexual men have additional tips on how they manage their online dating presence?

eHarmony legal troubles may be over in New Jersey but in California they are just starting. According to a press release another class action lawsuit has been filed and certified by California Superior Court Judge, Victoria Chaney.

The plaintiffs in that case maintain that eHarmony’s decision to establish a separate site for gays rather than integrate its flagship site, eHarmony.com, amounts to an unlawful “separate but equal” policy and the continued marginalization of gays, lesbians and bisexuals.

eHarmony's separate site for gay singles is called Compatible Partners, which just launched recently.

An article on QUEERTY called If eHarmony Must Allow Gay Dating, Should Gay Sites Have To Welcome Straights? examines the California lawsuit more closely with some good comments by their readers. The author seems to be on eHarmony's side as he points out if eHarmony must allow gay singles to join their dating site, then sites like ManHunt and Adam4Adman should allow straight singles to join. Some of these gay dating sites do allow heterosexuals to join but most do not cater directly to this type of sexual orientation.