Mere curiosity adds wings to every step. Wolfgang Van Goethe
If you have some curiosity within, you attempt to evaluate people and events without your prejudice and even if you have a bit curiosity in understanding them… Such that; if you care about receiving information at first hand and you find it valuable to have opinion afterwards… And, of course, if you believe in yourself and face up to all positive / negative judgments… I will suggest you a source that is really valuable and didactic in terms psychology and sociology: Tinder.
Oh… Have you been just looking at the photographs on Tinder and wishing to being liked by individuals till today? Not a big deal, don’t judge yourself negatively like a shot. As how much Facebook, LinkedIn, eksisozluk, itiraf.com are innocent, Tinder is also tantamount to them.
Thinking in simple terms is the key of each project.
Match.com, eHarmony and OKCupit have been trying to guide the ones who are looking for the “right” person on internet for years, with quite sophisticated questionnaires and algorithms that work through the background of the web sites. Do you remember; there used to be a web application that only displays photographs with the options of “like / dislike”. Tinder, which was carried into effect by Sean Rad, Jonathan Badeen, Justin Mateen, Joe Munoz, Whitney Wolfe, Dinesh Moorjani, and Chris Gylczynski, has just caught this simplicity and turned into an application (2012).
This type of dating services that are based on location was brought into being in the year of 2005 by Ersan Özer and the founders of gittigidiyor.com who are serial entrepreneurs with the names of İstanbul.net, Ankara.net, İzmir.net in Turkey, long before the existence of Tinder. Those sites that have become profitable investments since month one could not approach to the firming value of Tinder today, unfortunately.
Statistics don’t lie
Shall we talk about statistics a little? While Tinder has 50 million of registered users in total, approximately 10 million of them are daily-active users (March 2015). While 54% of the users are single, weighted age group is 25 – 34 with a rate of 45% (March 2015). While 16.000 swipes are taken in a single second, the number of matches per second is 300 (June 2015). The duration of female members who remain active within the application is 8.5 minutes. Lastly, Tinder is being used actively in 196 countries (November 2015).
Table 1: Age Profile according to Age Groups, 2015
Due to the fact that it is not proper to ignore a channel which is so valuable and use of which is so popular and normalized, IAC/InterActiveCorp’s (IAC) increased its partnership share of Tinder in the year of 2014.
When we consider the number of daily active users of online communication platforms, it is obvious that Tinder has a long road to walk through:
Table 2: Number of active users, November 2015
Tinder, with its payable services that enables procuring searches by changing the location, is able to create an income.
I want to mention financial valuation of Tinder a bit. EBITDA of Tinder in 2015 is expected to be 75 million USDs. EV / EBITDA Multiplier square in Mobile field is x33.9 recently (Firm Value: Max. 2,54 Billion USDs). In any case, Tinder shall increase its advertisement expenses and develop different income models apart from membership in order to gain on such a value.
Will Tinder be offered to public?
Let us see that whether Tinder that is expected to be offered to public in 2016 will gain the interest of investors or not?
Judge a man by his questions rather than his answers. ~ Voltaire
Tinder of the Firms: Axial Networks Inc.
If you have some sense of growing within, you attempt to evaluate people and firms without your prejudice and even if you have a bit curiosity in understanding them… Such that; if you care about receiving information at first hand and you find it valuable to have opinion and to evaluate afterwards… And, of course, if you believe in yourself and face up to all positive / negative judgments… I will suggest you a source that is really valuable in terms financial evaluation and business development: Axial Networks Inc.
Banks, private-equity firms, top managers who intend to sell their firms, entrepreneurs who are looking for investors for their little-scale firms… They all upload financial data of their firms to this website which was founded by Peter Lerhman in 2010 and they wait for suitors who may like their rations. They would possibly be luckier if they used Tinder, inasmuch as they would be able to see who has checked on their firms.
It completed 500 deals in 2015
Today, there are more than 20.000 M & A experts, management consultants and various investors in Axial system, 1300 of which are firms. Total number of deals within the scope of all industries is 4200. Approximately 250 deals are logged in the system per week and 50 deals are finalized on each month.
Table 3: Membership Structure and Membership Integrity 2010 – 2015
Although there are competitors such as Intralinks Holdings Inc.’s DealNexus and MergersClub, they seem to be quite distant from the league of big gamers such as Goldman Sachs Group, deal largeness of which is 5.3 billion USDS, when deals are considered between 5 – 100 million USDs. They seem to be brightening the market that has been kept in the background with their competitors, without hurting each other.
Axial Network that generated an income of 7,2 million USDs in 2014, has not reached to the desired profit volume ratios. When we consider the fact that average of EV / EBDITA multiplier of recent technology companies is x9.0, we can say that firm value of Alexia is 64,8 million USDs today. But please, don’t get disappointed by this evaluation soon. Axial, the total investment amount in terms of Series A and B is 20 Million USDs, has been supported and believed in terms of its future by the firms of Comcast Ventures, Redpoint Ventures and First Round.
As you see, just like Tinder that is the heart-thief; Axial the M& A Hunter also managed to excite the attention of investors!
Let us see when will they develop their services and member profiles and deliver more various services to larger masses and intend to go public…
I have no special talent. I am only passionately curious. ~ Albert Einstein
- Capital IQ