Industry

The dating industry remains a firm favorite for entrepreneurs who dream of founding the next breakout startup. But for many big-time investors, new dating platforms are risky ventures in a crowded market that may not be worth betting on. In honor of Valentine’s Day, Crunchbase News took a look at the relationship between startups, investors and the pursuit of finding a mate. Their status? It’s complicated.

Online dating has proved it can be an enormously profitable industry, yet despite producing impressive numbers, it often struggles to lure venture funding. “In 2018,” writes Joanna Glasner, “venture investors put $127 million globally into 27 startups categorized by Crunchbase as dating-focused. While that’s not chump change, it’s certainly tiny compared to the more than $300 billion in global venture investment across all sectors last year.”

Global venture investment in dating startups currently leans heavily toward companies based in China. Blued, a China-based dating app for gay men, received nearly 80 percent of dating-related capital in 2018. In 2017, Chinese mobile dating app Tantan received the bulk of dating investment. In 2014, Beijing-based matchmaking site Baihe raised a staggering $250 million.

Users of the popular dating app Coffee Meets Bagel woke up to a surprise on Valentine’s Day. Instead of looking at matches, they were greeted with a notice from the company saying some of their personal data had been hacked.

According to a report from CNN, the data breach occurred a few days before on February 11, but CMB executives were trying to assess the situation and the extent of the damage. In their notice, the company stated that an “unauthorized party gained access to a partial list of user details.”

Their email goes on to say: “The affected information only includes your name and email address prior to May 2018. As a reminder, we never store any financial information or passwords.”

Match Group announced that it has fully acquired dating app Hinge, owning 100 percent of the company along with other high-profile brands like Tinder and OkCupid. This news comes on the heels of Match Group’s announcement that it exceeded revenue expectations in the last quarter of 2018, causing its stock to rise.

Previously, Match Group stock had been downgraded from hold to buy by Deutsch Bank analysts. But with the earnings report, its stock climbed more than 5 percent.

Part of the appeal of Match Group to investors is that it has acquired a host of popular dating apps, including Hinge. The app has been through a rebrand over the last year, focusing on attracting more serious daters.

Online dating company eHarmony, who built its reputation for more serious daters, was recently acquired by German media company ProSeibenSat.1. The media company are the producers behind “Married at First Sight,” and have already expanded beyond television with the acquisition of Parship Elite Group, an online dating platform for long-term relationships similar to eHarmony.

It left many wondering what future plans were for eHarmony, which has seen competition lately from apps like Tinder and OkCupid, and how Parship fits into the mix.

Online Personals Watch recently interviewed Tim Schiffers, the CEO of Parship Elite Group about the acquisitions and Parship’s future plans. Schiffers said Parship plans to bring eHarmony to its platform instead of offering competing services. “We have invested a lot into our technical setup over the past few years and are happy to harness synergies in that area.”

Sunday January 6^th is the busiest day of online dating’s high season, with many people downloading apps and swiping right, hoping to find love in the cold winter months, also known as “cuffing season.”

More people are also motivated to find love thanks to New Year’s resolutions (and the cold weather). With the holidays behind us, January is the perfect time to adopt new habits, including trying a new dating app or rejoining one you’ve used before.

Research has shown over the years that the first Sunday of January is generally the best time to download a dating app and start swiping. Most apps have reported a surge in activity on this particular day, as well as generally increased activity during the month of January through February 14^th.

Tinder has fired a group of employees who brought a lawsuit against parent company Match Group and its controlling shareholder IAC, according to website The Verge who broke the story. Tinder did not reveal how many people were fired, but former communications VP Rosette Pambakian was notably among them.

Tinder employees who brought the lawsuit against Match Group alleged that the company had manipulated financial data in order to lower the company’s valuation, forcing former co-founder and CEO Sean Rad among others to accept less money than they claim their shares were worth.

In addition, the lawsuit includes Pambakian’s allegation that former CEO Greg Blatt also sexually harassed her at a company holiday party.