News on Medial

Why investors don’t fund dating

Internet · 9m

Andrew Chen discusses why investors are hesitant to fund dating startups. Key challenges include high churn rates, limited market size, expensive user acquisition, city-by-city expansion difficulties, and limited exit opportunities. Dating products face unique problems like built-in churn, where success leads to user loss. New mobile dating apps address some issues with free models and casual dating focus. Overall, the dating sector presents significant hurdles for traditional investment strategies.