Looking at it from a financial perspective, its estimated that globally the industry is worth more than £2bn.Online dating is now so important to the UK economy that the Office of National Statistics recently added online dating to its basket of goods and services to calculate UK inflation rates.I can tell you first hand building a dating business sux. More than 10 other dating companies were acquired in the past year, two by Barry Diller’s IAC/Inter Active, which already owns nearly 22% of the market through an amalgam of sites and apps that includes Ok Cupid, and Tinder.It is tough on a variety of levels, not least of all creating a pool of users quickly, trying to get them to eventually pay something, and then the big one – the ultimate irony that the better the product you build – the faster you lose your users. “In terms of revenue, the online-dating industry has matured, but there are too many players and not a lot are generating sufficient revenue for these sites,” said Britanny Carter, analyst for research firm IBISWorld.Others are entirely free to join and use, but make money through advertising – though this model’s popularity is waning due to the lack of reliability of cashflow.
The dating industry is comprised of matchmakers, newspaper and magazine personal ads, telephone chat lines, singles bars, nightclubs geared toward singles, speed dating organizations and internet dating services.
Once seen as a rather nerdy, even desperate way to meet a potential partner (or, let’s face it, a less than wholesome means of finding a sexual encounter) – the industry has now become a much more acceptable way of finding love.
Globally, one in five relationships now starts online and the media is full of stories describing happy marriages which started with the click of a mouse.
They think the app can eventually generate around 0 million a year, like Meanwhile, venture capitalists are leery of giving any one dating startup too much funding.
While funding to dating firms was up in 2014, the size of the rounds is actually declining, according to data from Priv Co.