"Our core position will continue to center on social networking and this acquisition enriches our product line in the social space.
We will continue to invest and incubate more sub-brands to serve the social and entertainment needs of different demographics," said Yan Tang, Chairman and CEO of Momo.
Investors exist to make money, especially when there’s a big market problem.
In places like NY where investors are partial to techy techy stuff like fin-tech and enterprise startups, or invest in another “saas content marketing” blah blah blah…they have no desire to invest in products to serve the most basic human need: love.
The deal, the largest acquisition Momo has ever done, is expected to close in the second quarter of 2018, subject to customary closing conditions, the firms announced.
Founded in 2014, Tantan works the same way as the U. dating platform, which utilizes a location-based social search mobile app that facilitates communication between mutually interested users.
The bottom line I hope investors pay close attention to: Date tech is badly in need of with a common belief in vc that hitting 20% return on investments is “respectable,” bets are missed 80% of the time.
And sure Bumble took an interesting stab on date tech to help women, but there’s room for improvement and their female-friend angle has nuances too.A few of the male vc’s (including one of the most revered out there)and a top women vc I linked with alternatively said they don’t invest in dating apps because they never have before.While I get that some investors have strict verticals, for the investors that VC’s made a lot of investments in artificial intelligence last year, so it shows they’re likely making investments in things they never invested in before — but probably on things that might sound cooler to name drop at their next VC dinner (which hopefully won’t end humanity).According to CB Insights, VCs invested a mere .8 million into online and mobile dating startups in 2014 – that amount is nothing when compared to the larger startup landscape, in which 0 million deals to individual companies have increasingly become a norm.Over the span of the last five years, in fact, dating startups have raised a paltry overall amount every year – with no year seeing a surfeit of 0 million.
Momo had 94.4 million active users as of last September.