Markus Frind, the internet dating site’s sole shareholder, claims he’s staying on as business CEO
PlentyOfFish CEO Markus Frind and wife Annie
Markus Frind estimates the essential he ever dedicated to their business ended up being $500.
“We were lucrative from 1,” said the founder of this PlentyOfFish (POF) online dating service, “so an investor had not been one thing I experienced to be concerned about. day”
Frind’s biggest rival, the Match Group, established July 14 it had been buying POF and including the Vancouver-based business to its profile of online dating sites solutions that features Match.com, OkCupid and Tinder.
Whenever POF’s sale closes later this year, Frind may have turned that $500 investment into US$575 million.
“The genuine thing that is cool Markus, and PlentyOfFish and therefore success, is the fact that it truly goes contrary to the main-stream wisdom of investors,” said Boris Wertz, founder of Version One Ventures. “Here’s some guy, as being a solamente creator, bootstrapped a business over 12 years, never ever raised just one dime.”
As POF’s shareholder that is sole Frind will likely be bringing US$575 million – minus taxes – through the all-cash deal right right back with him to Vancouver.
Frind is remaining peaceful about what he’ll do using the cash, but Wertz expects the tech that is local to profit.
“Markus has, within the last several years, resulted in the most active angel investors, tech investors into the town,” Wertz stated. “Frind’s exit will at the least keep that degree and maybe accelerate his investment even in Vancouver. We need that is sure.”
Frind, nevertheless, stated he would rather spend money on later-stage businesses over Vancouver technology startups “because you can easily spend more income, and also you don’t need to write $50,000 cheques.”
This he put $21 million into Burnaby-based software developer and e-commerce company Cymax year.
While Vancouver features a number that is limited of technology organizations by which to get, Frind said their strategy is always to glance at discounts because they arrive.
“I’m maybe not going earnestly nowadays and searching for a lot of opportunities. We continue to have a time work,” frind stated.
And then he anticipates maintaining that time work even with the offer closes into the quarter that is fourth.
“This is not a wake. You don’t purchase organizations to stagnate or drop. The program the following is there’s going to become great deal of development.”
Frind, whom spent my youth within the B.C. village that is northern of Hope before studying computer-programming during the British Columbia Institute of tech in 1997, told company in Vancouver in 2008 there clearly was “not an opportunity” he’d sell POF. The online dating service was generating annual revenue of $10 million even when he was running the business from his own apartment at the time. Frind had been determined to see exactly how big POF could develop.
Seven years later on, his tune changed.
“i’ve a 10-month-old child now, as soon as you begin having young ones you begin calculating amount of time in various periods,” Frind told BIV following the purchase ended up being established. “Now appears nearly as good a time as any to market.”
The price that is going a technology business like their has exploded considerably with smart phones overtaking industry and changing business model free of charge online dating services. In the place of being driven by desktop marketing income because it is at its 2003 founding, POF has transitioned to premium subscriptions offered on mobile apps.
It’s been a success. Income has doubled since 2012, POF reached 100 million users this season and its particular revenue that is annual is to achieve $100 million in 2015.
Meanwhile, the ukrain brides Match Group’s moms and dad business, IAC, announced month that is last had been pursuing a short general general public offering because of its online dating sites subsidiaries. Buying up the main competition would improve the Match Group’s valuation once it goes general general public.
While Frind isn’t particular just just exactly what the term that is short, he understands just exactly just what the long-lasting strategy is.
“If we look ahead a few hundred years, each and every residing person will probably have an ancestor whom met on PlentyOfFish.”