Dating App Turns Down 30 Million Offer from Mark Cuban. Find Out Why!
A mobile app that encourages selective dating and doubles as a social network recently launched its service in London. Coffee Meets Bagel is the creation of three Asian American sisters in their 30s, who sought to create a mobile dating space that emphasizes finesse and femininity over functionality.
While Coffee Meets Bagel is certainly entering a crowded space dominated by the likes of Tinder, OKCupid and Hinge, this mobile app arrives with an interesting business background. The three entrepreneurs were contestants on the reality television series Shark Tank, and they famously turned down a buyout offer from business mogul Mark Cuban, who was prepared to invest $30 million.
As with any other new entry to the mobile dating apps space, Coffee Meets Bagel has been measured with the Tinder yardstick, and the two networks could not be any more different. Whereas potential matches on Tinder are fast and abundant, Coffee Meets Bagel offers members a single match per day. This feature is the antithesis to Tinder’s swipe left and right functions, whereby users can browse profiles they like or don’t like.
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At this moment, Coffee Meets Bagel does not disclose revenue or membership figures, but the company has mentioned that 25 million matches have taken place on the network. This may not be as spectacular as Tinder’s billions of matches, but it is important to remember that Coffee Meets Bagel is a young company that has only tapped markets in the United States as well as Sydney, Hong Kong, Toronto, and now London.
It is too early to tell if the entrepreneur siblings, who famously turned down $30 million from Mark Cuban, made the right choice by following their business instincts. Prior to launching in London, Coffee Meets Bagel received nearly $8 million in venture capital.
Using the anticipated return on investment method of valuation, the initial venture capital round will yield a little less than 30 percent profit in six years, but how much Coffee Meets Bagel will be worth by the end of the decade could not be estimated at this point. What is certain is that this mobile app is in a very competitive field, but at least the company is succeeding in attracting a solid female user base.