Running the figures
After a remarkable introduction and summary of the way the item works, the sharks dig in to the economic information on the app that is dating.
- Month-to-month users: Between 100,000 and 500,000 users
- Yearly product product sales: $87,000 year that is last $270,000 in very first five months of present 12 months
- Projected sales that are annual $1 million for present 12 months; ten dollars million for the following year
- Consumer acquisition price (CAC): $0.30 cents
- Margin of profit: negative
The siblings refuse to expose a precise amount of month-to-month users, that they claim is actually for competitive reasons, however they are maddeningly obscure about this point. They claim so it offers good concept of individual base, nonetheless it plainly does not. After duplicated grilling through the sharks, Mark Cuban falls down on concept. вЂњIвЂ™m away. You need to offer us that, have you been kidding? IвЂ™m away,вЂќ he claims. The sisters appear unruffled, and carry on fielding concerns.
They arenвЂ™t making any profit currently as it turns out, their profit margins are negative вЂ“ meaning. That they had to expend a huge sum of money upfront, mostly on salaries to pay for their web designers. That features having to pay on their own a $100,000 income each. The sharks appear incredulous as of this quantity.
вЂњThat is still an important pay cut from everything we had been making prior,вЂќ claims Dawoon, to which Robert reacts with rollicking, mocking laughter.
The siblings have actually raised $2.8 million in outside capital thus far, with one investor that is notable one of many co-founders of Match.com, whom adored their concept. (more…)