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Dating App Grindr Is Going Public Via SPAC Deal
Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
Queer dating app Grindr is planning to go public by merging with a Singapore-based blank-check company in a deal that would value the company at roughly $2.1 billion.
West Hollywood-based Grindr said Monday that it has agreed to merge with Tiga Acquisition Corp., a special purpose acquisition company (SPAC) trading on the New York Stock Exchange. Grindr plans to raise at least $384 million from the transaction, with plans to use the funds to pay down debt and further grow its business.
Since launching in 2009, Grindr has grown to around 11 million monthly active users globally, roughly 80% of whom are under 35 years old. The app, which is free to download on iOS and Android devices, has emerged as the queer community’s most popular answer to the Match Group-owned Tinder, which caters primarily to straight singles. Grindr does compete with other queer dating apps including HER, mainly used by lesbian women; Lex, for queer users; and Feeld, an app for polyamorous connections.
Grindr said it generated $147 million in revenue last year, a 30% increase from the year prior. That revenue growth was fueled by an increase in the number of users paying for the app’s premium subscription, which totaled 723,000 at the end of 2021—up 31.5% year-on-year.
Grindr is pursuing a SPAC merger despite a sharp slowdown in SPAC deals amid heightened regulatory scrutiny, as well as a wider stock market correction that has pumped the brakes on IPO deal volume this year. Still, SPAC deals remain a quicker way for companies to list on public markets by side-stepping much of the regulatory red tape around traditional IPOs.
The app recently came under fire after a Wall Street Journal article exposed Grindr’s years-long practice of selling users’ precise location data to the highest bidder—a practice that runs the risk of outing some users’ sexuality and compromising their safety. The company countered the report by claiming it had implemented new privacy policies to prevent the sharing of “precise location” data.
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Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
https://twitter.com/samsonamore
samsonamore@dot.la
Why Women’s Purchasing Power Is a Huge Advantage for Female-Led Leagues
05:00 AM | June 12, 2023
Samson Amore
According to a Forbes report last April, both the viewership and dollars behind women’s sports at a collegiate and professional level are growing.
In 2022, the first 32 games of the NCAA tournament had record attendance levels, breaking records set back in 2004, and largely driven by the new and rapidly growing women’s NCAA tournament. WNBA openers this year saw a 21% spike in attendance, with some teams including the LA Sparks reporting triple-digit ticket sales growth, about 121% over 2022’s total. In 2023, the average size of an LA Sparks crowd swelled to 10,396 people, up from 4,701 people.
Women make up half the population, but “also 50% of the folks that are walking into the stadium at Dodger Stadium, or your NFL fans are just about 50% women,” noted Erin Storck, a panelist and senior analyst at Los Angeles-based Elysian Park Ventures.
Storck added that in heterosexual households, women generally manage most of the family’s money, giving them huge purchasing power, a potential advantage for female-run leagues. “There's an untapped revenue opportunity,” she noted.
In the soccer world, Los Angeles-based women’s soccer team Angel City FC has put in the work to become a household name, not just in LA County but across the nation. At an LA Tech Week panel hosted by Athlete Strategies about investing in sports, Angel City head of strategy and chief of staff Kari Fleischauer said that years before launching the women’s National Women’s Soccer League team, Angel City FC was pounding the pavement letting people know about the excitement ladies soccer can bring. She noted community is key, and that fostering a sense of engagement and safety at the team’s home venue, BMO stadium (formerly Banc of California Stadium), is one reason fans keep coming back.
Adding free metro rides to BMO stadium and private rooms for nursing fans to breastfeed or fans on the spectrum to avoid sensory overload, were just some of the ways ACFC tried to include its community in the concept of its stadium, Fleischauer said. She noted, though, that roughly 46% of Angel City fans are “straight white dudes hanging out with their bros.”
“Particularly [on] the woman's side, I'd like to think we do a better job of making sure that there's spaces for everyone,” Fleischauer told the audience. “One thing we realize is accessibility is a huge thing.”
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Samson Amore
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
https://twitter.com/samsonamore
samsonamore@dot.la
‘Influencer Olympics’: Content Creators Are Getting Paid Big Bucks To Attend Coachella
05:01 AM | April 20, 2023
Evan Xie
If someone attends Coachella and doesn’t make a TikTok about it, did they even go? Scrolling through any social media feed over the past few days, it seems like the answer is a firm “no.” Instead, people document everything from the food they ate to the cowboy boots they wore. The is even a genre of video dedicated to complaining about Coachella.
On TikTok, videos tagged #Coachella2023 have already amassed over 1.6 billion views—already up from #Coachella2022, which had 1.5 billion views and the second weekend has yet to begin. On Instagram, the hashtag has almost 37,000 posts. Sure, some of the content is posted by people attending the festival for fun. But a quick scroll through either platform shows that influencers have created the vast majority of the posts.
Content isn’t even limited to the two festival weekends. In the months leading up to Coachella, people share survival tips and outfit inspiration. And, afterward, the outfits reviews judge who captured the current trends and who fell flat.
This flood of content has led many to deride the influencers swarming Coachella. Critics say that the focus on fashion has ruined the festival and that influencers ushered in this change. A recent video by the singer Loren Grey, who rose to fame through TikTok, only confirmed these issues. Grey dubs Coachella “the influencer Olmpyics” despite the fact that many don’t even attend the festival. Instead, she says they film outfit and lifestyle content from the desert to make it look like they were in the thick of things.
So how did Coachella transform from a music-centric event to a TikTok content farm?
The influencers aren’t entirely to blame. Instead, people should point fingers at the brands Coachella works with to sponsor the festival. Brands like Neutrogena, H&M and Casetify—three of this year’s sponsors—all work with influencers to produce content from the festival and promote their products.
But the biggest player in Coachella’s influencers world is Revolve. Since 2015, the fashion company has produced the Revolve Festival concurrently with the first festival weekend, where they invite social media influencers and celebrities to network while watching trending artists perform. And, though influencers made Coachella content prior to Revolve Festival, the new event was a clear turning point in how brands could benefit from social media stars.
Revolve also works with influencer marketing agencies to gift clothes to attendees prior to Coachella. Evidently, the strategy works—back in 2018, the company said sales from the Monday before the festival were higher than Cyber Monday. The music festival has only become more crucial for the brand’s sales since then, with Revolve likening the festival to a retail Superbowl.
But it’s hardly just Revolve that’s capitalizing on the festival. Last year, one influencer said she earned $2,000 per Instagram post featuring Coachella content. Another influencer was paid $2,500 for three Instagram stories and a Reel in addition to a free ticket compliments of one of the brands she partnered with.
The reliance on influencer marketing during the festival is just a reflection of a wider focus on social media marketing. In recent years, brands are leaning even further into the presumed authenticity of micro-influencers who attend the festival. Which of course, means more content from more people.
So as annoying as some people find the unending stream of content, it’s time to accept that Coachella has long been a networking event for those whose livelihood depends on creating a glut of “get ready with me” videos.
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Kristin Snyder
Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
https://twitter.com/ksnyder_db
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