The Challenge
Smitten is building a gamified dating app for Generation Z. Our strategy centers around getting our customers into better conversations by creating an experience that is exciting. We have achieved significant scale (2m+ users, 20m+ matches, and 1b+ swipes), surpassing the critical mass required for network effects to kick in.
Online dating has grown considerably over the past few years. As people spend more time online and as lives get busier, an increasing percentage of the population in developed countries is now meeting their life partners through dating apps.
Given Smitten’s strength in retention and scale, the Company has historically received significant inbound from investors and has closed over $15m+ (including a large Series A round). Looking ahead, however, Smitten needed to partner with deep-pocketed investors who understand the interplay between upfront capital investments and network effects, specifically in the context of dating apps.
Investor Intelligence via Metal
David Simonarson, the Founder/CEO at Smitten, has developed several consumer businesses and has decades of experience closing venture rounds. Historically, he relied on word of mouth and general industry knowledge to identify investors with prior experience with online dating.
With Metal, David was able to use the platform to identify investors who had made similar investments before. In the case of Smitten, similar investments are not necessarily limited to dating apps and can include many types of businesses that serve consumers and have an interplay of network effects.
Specifically, by writing out specific descriptions, David’s team was able to use Metal to identify various types of similar companies. The team then developed and saved lists of similar companies, loaded them into a search to view their underlying investors, and further refined their search with granular filters layered on top.
Impact on the Fundraising Process
With Metal, David was able to considerably cut down the total time spent on the research and administrative aspects of fundraising. A key efficiency driver was the ability to achieve high precision around a very specific type of investor profile. This allowed him to focus his time on refining his round narrative, building key relationships, and having more conversations.
In addition, Smitten’s team also observed a much lower rate of “unnecessary meetings.” This happens when you realize in a second call with an investor that their fund just isn’t well-positioned to make the sort of investment that your round requires.
Executive Summary
• Zoom in on the exact type of investor that was the “most likely” partner for the round
• Avoid “unnecessary meetings” with investors who aren’t a strong fit for the round
• Spend more time on actual execution (as opposed to research and sheet management)
