Due to the sheer pace of change in their chosen field, tech companies have to keep innovating to remain competitive with other companies with similar products and services. However, it is interesting to note that while some tech companies innovate using their own resources, that is not the sole path of success, as shown by how other tech companies choose to buy out innovators for the sake of benefiting from their innovations, thus making themselves that much more competitive in more than one sense in the process. Tinder is often considered to be an excellent example of such tech companies, with the launch of Swipe Ventures serving as convincing proof of that claim.
Swipe Ventures is an investment vehicle that will be used to invest in new businesses for the purpose of either purchasing them, supporting them, or otherwise benefiting from the investment opportunities represented by them. Since Tinder is supposed to help interested individuals find one another, it should come as no surprise to learn that most of this investing will be focused on businesses with some kind of relationship to dating. However, it is interesting to note that some of this investing will be focused on businesses with some kind of relationship to the rest of the social sphere as well, which makes sense because of their potential synergies. Neither of these two things are new for Tinder, as shown by its buy-outs of small but innovative companies such as Humin and Tappy, but the setup of a new investment vehicle makes the process that much more formal.
Who Will Run Swipe Ventures?
What is most interesting about the launch of Swipe Ventures is how much focus is being placed upon it compared to the other components that make up The Match Group, Inc., which owns a number of online dating websites. For example, one of Tinder’s co-founders, Sean Rad, has stepped down from his previous position as the CEO of Tinder so that he can serve as the Chairman of Swipe Ventures. In his place will be Greg Blatt, who is serving as the CEO of The Match Group, though it is interesting to note that Sean Rad will be holding onto his position as the Chairman of Tinder, meaning that he will be the Chairman of both Tinder and the Swipe Ventures.
To paraphrase Tinder, the move is being made because companies need structural changes past a certain point to support continuing expansion. In other words, while Swipe Ventures will be a means of supporting innovative companies that could make sound investments for someone with the means to do so, its main purpose will be examining investment opportunities to see whether they can strengthen The Match Group through their acquisition or not. By formalizing its acquisitions in such a manner, Tinder can accumulate the expertise, the experience, and other resources needed to conduct such processes in a smoother manner than otherwise possible, thus making it the natural next step to its previous efforts when it came to acquisitions.
Regardless, Sean Rad is being chosen for the position of Chairman of Swipe Ventures for understandable reasons. For example, he was involved in monetizing Tinder, which is a critical step for tech companies with something promising but need a source of income to take it to the next level. Having completed his efforts in that regard, he makes a natural choice for further monetization of The Match Group by investing in innovative companies. At the same time, his position as Chairman of Tinder means that he will retain an important role in overseeing its strategies, which will synergize well with his new position as Chairman of Swipe Ventures because of how its intentions will serve those same strategies. Meanwhile, Greg Blatt’s new position as the CEO of Tinder means relative stability because of relative continuation, which will be important because a stable foundation will be needed if Swipe Ventures is to succeed in its aims.
What Will Be Swipe Ventures’ Impact On the World of Dating?
On the whole, Swipe Ventures seems like a sound move for The Match Group in light of its needs and circumstances. First and foremost, it is facing competition from a number of sources, meaning that it needs to strength its hand if it is to maintain its position in its chosen market. An investment vehicle such as Swipe Ventures is an excellent solution to this problem for a couple of reasons. First, its investments should provide The Match Group with an additional source of income that can be put to excellent use elsewhere in its operations, particularly since it has the expertise and experience needed to evaluate potential investments in dating and the rest of the social sphere like few other investors out there.
Second, Swipe Ventures has the power to absorb small and innovative companies into The Match Group before they can become a competitor in their own right, which will not just protect it from potential threats to its continuing profitability but also strengthen its operations in the process by providing it with newer, more innovative ways of doing things that will appeal more to an ever-changing consumer base. Something that is all the more important because other companies in the same market have the same intentions, meaning that if it is successful, the investment vehicle that is Swipe Ventures should provide The Match Group with an important advantage over other tech companies with the same interests but without the same institutional capabilities.
Of course, whether Swipe Ventures will be a sound move remains to be seen, since what seems to be so may or may not be so in the end. It is true that it is remaining grounded in the sense that it will specialize in businesses that should already be familiar to those who run it, which is absolutely critical in investing, but at the same time, it is nonetheless venturing into a whole new direction. None of the challenges standing in its way cannot be overcome, but whether they will be overcome is likely to have a great deal of effect on the viability of The Match Group as a business in the near future.