Cheryl Meyer at The Deal has an in-depth look at the online dating industry financials and investment. This is a must-read article with lots of new information about funding and new market entrants.
Best quote by far is from David Simonoff, CEO of Spark Networks:
If Yahoo! or Match bought us, we would be the swing vote that would give them bragging rights to be the online mass market Internet personals company.
The acquiring company would also be saddled with all the financial, marketing and branding baggage that Spark brings to the table.
Simonoff, who took over at the company last year, says Spark has been approached by suitors for two years and this year will make its own acquisitions or consider “other scenarios,” such as an expansion into other verticals, or a possible sale. San Francisco equity management firm Criterion Capital Management took a 7.4% stake in Spark last fall.
The article goes on to mention opportunities in Europe, new features such as anonymous contact through mobile phones, new market entrants and a great overview of funding that has occurred in the dating industry during the last year.
It closes with a quote from eHarmony’s CEO Greg Forgatch, who says, for now, his company is staying focused on its main goal: lowering the divorce rate:
We are about one thing: building lifelong relationships for serious-minded singles,” he says. “We’re not a date for Friday night.
Companies who target serious daters continue to raise the most money, land the best deals and have the best cross-marketing deals. When are the value-added service providers going to get in there an raise the bar, plug the holes and offer the features and services that daters will use, whether through their dating site or as standalone services?
