Tinder, a word that is quickly becoming instantly recognisable to both those who use and those who don’t.

And there are no shortage of people getting some off the back of their sexting texting skills, something Vanity Fair made obvious last week when their piece on the dating app went viral and prompted an angry response from Tinder’s Twitter account.

But despite its success, and the general growth in the amount of money invested in dating apps since 2010, those in the know are advising potential investors to exercise caution when Tinder’s owners The Match Group go public. Let’s detail why many venture capitalists are steering clear of dating apps and intend to do the same with Tinder, this below from the Telegraph:

First, there are the ethical considerations, which cause some investors to lump dating apps alongside tobacco and gambling companies under the category “do not touch”…

The company has also struggled with leadership. Last week, it lost its CEO, former eBay executive Chris Payne, just five months into the job and after it had spent four months looking for someone to lead the company. He will be replaced by the ex-CEO, Tinder co-founder Sean Rad…

…there’s just not much to suggest that internet dating companies are lucrative investments. While some have managed to monetise, they tend to be the matchmaking sites that require more effort and dedication from users, who are therefore more likely to become paying members. But fickle users, who are likely to use several different apps, are swiftly switching to gamified swiping apps such as Tinder and its many lookalikes – which are proliferating amid busier lifestyles, soaring smartphone use and the growth of mobile internet…

What’s more, the irony of dating apps is that a successful product means you lose users, and this high churn requires these apps to rebuild their customer base constantly.

There is also the rather damning evidence that most dating companies have not fared well in stock market listings, big names such as Cupid and Ashley Madison struggling to raise the funds they sought.

Should this worry its regular users? No, and until they start charging to send dick pics I imagine there won’t be much of an uproar.

[source:telegraph]