Recently took on a project to look at the valuations of mobile dating apps (2-3 years in operation with less than 10m revenue). Literature on their valuation methodology is sparse on the internet. Can anyone shed some light on looking at these companies? There hasnt been much precedent transactions with disclosed values and comps are more on the bigger internet dating companies instead of the mobile apps. Or do you think they play in the same arena (e.g. match vs. hinge), or should the dating apps be valued differently? Thank you for the input in advance.
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look at the revenue model - are the males or females paying for a subscription (like "coffee meets bagel"), how many of those users are there? What other sources of revenue can they generate, either premium or buying trinkets to view more matches. I only know this cause I was watching Shark Tank and Coffee meets Bagel was on hahaha- other then that not my industry.
coffee meets bagel I would imagine raised some seed and series money - try to find the pitchbook and look how they valued it based on their monetizing of its user base.
A great resource I have used in the past is the website sensortower.com. This website provides pretty in-depth information regarding mobile applications. I found it very valuable and I think you may as well.
A multiple of number of sexual encounters/EBITDA
Discount rate of % of STIs contracted.
Our company likes to think of those as meaningful connections, not infections
Amazing comment line lol
You value it as NF, get off the fucking couch and sexually harass women in public if you're so desperate to feel desired.
Traditional app - DAU (Daily Active Users). Dating app - DAF (Daily Active/Actual Fucks).
way to take what I said and jargonize it to make it seem like an industry term
bang for your buck
At the end of the day, it all boils down to revenue. And that's why I feel Raya will be super hawt in the coming years. Super exclusive + subscription model.
Amount of connections/one night stands multiples.
Came in here to make a snarky comment about a Price/Lay ratio but it looks like I'm too late, everyone stole my line
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