Fundraising

How many users (total/active) does my app need before I can expect VCs to be interested in investing?

Bobby Simpson Cofounder/CEO of Vouch, Partner of Harbinger Land

April 17th, 2017

I recently launched a matchmaking/dating app and am wondering how many users we need to gain before VCs would be interested in investing in a Series A. We've done some PR and marketing and are trying to plan out additional marketing efforts with the resources we have available.

Dimitry Rotstein Founder at Miranor

April 17th, 2017

There is no definitive answer to this question, since every VC has its own criteria. Also, the total number of users is just one metric - there are others that may be more important to a given VC or in general, including the rate of growth, the engagement, the revenues, etc. But, in the most general sense, if you get to 10 million users within a couple of years, then that starts to look interesting. Unfortunately, the last I heard, dating apps have really fallen out of favor with investors, in part because it's very hard to come up with a viable business model, so you may need even more impressive traction to overcome their fears.

averasko

April 17th, 2017

The number of users is not the number for VCs. They are looking for the new 'unicorn' before it becomes a unicorn, i.e. they are looking for an exponential growth or, at least, a possibility of such.

Amit Dave strategy & financial consulting for startups | FounderCEO.io

April 19th, 2017

In today's market condition, VCs are very tight fisted in making investments. So I hope you have figured out a viable business model to make this app profitable before you invest any more time on this.

It's not the actual number of users, but the traction that matters at this stage. Take a look at https://venturefund.io that helps you pitch on the basis of your growth metrics.

Barry Vial Chairman, Liquid Markets

April 17th, 2017

I question the premise that a single metric (as the question is framed) will cause investment. Of course if your run rate after a few months from launch is 10,000 BALANCED uers then sure, that's a good number; but it probably doesnt apply to your situation. If you had 1,000 users, but with some combination of compelling IP, team, model, then you might get more interest than what user acquisition stats alone can provide.