Why Investors Don’t Fund Dating

One of the main challenges in asking if your idea is “good” or “bad” is that there are a lot of outside influences that go into determining feasibility, and a lot of them don’t have anything to do with the idea itself. One of those is the market category, and some market categories are much more attractive than others. Online dating is one of the hardest categories to compete in, and this article outlines exactly why.

Here’s a simple fact: It’s super hard to get a dating product funded by mainstream Silicon Valley investors, even though it’s a favorite startup category from 20-something entrepreneurs

The key here is churn – once a user successfully finds a date, they stop using your dating service!

With most subscription products, the more you improve your product, the lower your churn. With dating products, the better you are at delivering dates and matches, the more they churn! As you might imagine, that creates the wrong incentives.

http://andrewchen.co/why-investors-dont-fund-dating/

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