Tinder announced that the Benchmark which is a San Francisco VC firm is going to get an equity stake in this dating application. Matt Cohler who is a General Partner is going to be the new director of the dating app. This was reported by LA Business Journal. However, the size of their stake had not yet been revealed by any company but there are some sources that said that there was no real money that was invested from Benchmark. It looks like Tinder decided to give a stake of its dating application to this company for other reason.
In the first report, it was said that Benchmark was leading by 50 dollars million up to 75 million of investment round and this would have increased the value of Tinder to be 1 billion dollar. However, no person from Benchmark for Tinder had commented to these reports and it ended up being treated as rumor or just speculation. By now, this was seen as if it is not the case of investment of money because there was no money that exchanged hands.
Cohler had an executive position before on Linkedln and Facebook and this led to the success of Benchmark through some startup investment like Uber, Instagram and Dropbox. The investment of the firm has been proven to improve the business model with the success of smaller companies and Tinder looks as if it is the next to enjoy this investment. However, it is yet to be seen if the company can push the application to another level. Tinder has been successful for a long period.
Chief executive and Co-founder of Tinder has said that Benchmark is going to bring with it unparalleled experience when it comes to the consumer of the internet world. It is quite excited to be getting the contribution of Matt Cohler. Rad continued saying that he is expecting to see enough growth within the company and this is because of this recent investment.
Tinder was launched during the year 2012 by the developer Hatch Labs. This is a group of InterActivCrop and continues to have the controlling interest in this dating service. The dating app falls into IAC subsidiary Match Group which is the owner of OKCupid, Chemistry.com and Match.com. The relationship had helped Tinder to be kept away from the outside investors but this seems that it is changing now.
Tinder was launched in 2012, it is a social discovery app and it uses the intuitive technology needed to connect the users who are interested and who are near each other. The app is engaging and simple and it makes it easy for the people to meet. Its unique algorithm makes it easy for the new people to have meaningful connections. With millions of the users found in every leading country, Tinder is believed to have at least 1 billion swipes and this means over 12 million match every day. The Match Group, for which Tinder is a part of, has the information about business, fitness, education and dating.