Coffee Meets Bagel is a dating website for people who like to have fun. The goal is to match individuals based on their interests and life values to facilitate healthy and happy relationships.
The application uses users’ Facebook profiles to match them with potential partners among their Facebook friends.
The developers of this technique say it is beneficial because everyone uses Facebook, so they possess many common interests.
Coffee Meets Bagel is extremely popular among American singles. American users make up around half of the site’s regular users. The female audience outnumbers the male audience.
The app has been in high demand among both domestic and foreign users since its 2012 launch.
A person interested in finding their soulmate and developing a meaningful relationship with them is more likely to consider all the advantages of this unique dating site.
This application allows visitors to browse true love stories and weddings of individuals who may have found their destiny due to it.
The CMB estimates that approximately 200 weddings occur in the United States each year (April 2020). This demonstrates that the service promotes meaningful connections, not one-night hookups.
What is Coffee Meets Bagel?
Coffee Meets Bagel is an innovative concept that eliminates the worry and uncertainty associated with internet dating by utilizing mutual friend matching.
The easy-to-use tool makes use of information from Facebook friends and mutual connections to discover suitable romantic matches.
The app provides a discount or coupon for dates if both users agree to the proposed match.
Coffee Meets Bagel began operations in April 2012 in New York City and swiftly expanded to the Boston and San Francisco markets a few months later.
How Does Coffee Meets Bagel Work?
CMB is not your normal dating site for those in their 30s. There is a lexicon of terminology specific to it. Men are referred to as ‘Bagels,’ while women are referred to as ‘Coffee.
Coffee Meets Bagel is a term that refers to the meeting of a woman and a guy. It sounds endearing.
The software features its own money, dubbed ‘Beans’ (like coffee beans). Regular members can earn Beans after doing extra activities such as inviting friends.
The CMB allows users to send free messages. Every day, the computer generates six matches for each lady – these men are identified from their Facebook connections and have a high chance of winning their hearts.
It operates by searching for possible mates solely among active social media users. This is beneficial because if a lady receives daily suggestions and wishes to speak with a passive user, she will be extremely dissatisfied.
Nobody likes feeling neglected, especially women. A range of customizable search criteria allows users to find potential matches based on their age, beliefs, ethnic origin, interests, and education from their Facebook profiles.
Coffee Meets Bagel allows users to search independently via Discover if they wish to receive more than six offers per day.
Additionally, individuals can refer other singles to their friends to form a partnership or have a family one day.
CMB also offers various other interesting features, like Rematch, Open Sesame, and many others. We will return to them later. To begin, let us examine the process of registering on the portal.
Coffee Meets Bagel Before Shark Tank
Soo, Arum, and Dawoon Kang came to America as small children to get a first-rate education in America. Their father devoted every free moment to giving his three children the greatest chance at success.
Their hard work paid off eventually; they received degrees from Harvard, Stanford, and The Parsons School of Design, respectively, and began lucrative careers in their fields.
The three sisters began discussing dating and the frequent challenges they had encountered when dating online over lunch one day.
They were all aware of the type of dating experience they desired, and none of the available sites or apps provided it.
They figured that using their combined skills; they could launch an online dating service that would be a market niche. The Coffee Meets Bagel Company was born shortly after giving up their lucrative careers and founded the company.
They relocated to San Francisco to assist with the business’s technological setup and began with a dating website.
They developed and launched their Coffee Meets Bagel app within a year, but cash flow was a major impediment to further expansion, as is the case with all new businesses.
They applied to appear on Shark Tank, were accepted, and made their debut on the show in January 2015.
Shark Tank Pitch of Coffee Meets Bagel
Three sisters from San Francisco, California, are Arum, Dawoon, and Soo Kang. They were born and raised in Korea but emigrated to America as youngsters.
To say they are accomplished is an understatement: one attended Stanford Business School, another attended Harvard Business School, and a third attended Parsons School of Design.
They pooled their resources, quit their well-compensated careers, and formed a partnership. Their startup takes a different approach to online dating, and they believe it can transform lives.
They’ve come to “Shark Tank” seeking a $500,000 investment in exchange for a 5% stake in their business.
They’ve combined the tried-and-true concept of daily flash mobile sites with social networking aspects to create the highest-quality dating service available to singles.
As Soo describes, the software operates in an elegantly straightforward manner:
At noon each day, the app curates one perfect match – one who also happens to be a friend of a friend.
You have 24 hours to evaluate their profile information and decide whether to accept or decline the match—a mutual like’ results in the creation of a secret chat line that expires after seven days.
“The key to online dating success is seducing women,” Dawoon explains. (A truth that this reporter can certainly attest to.)
“Women are tired of joining up for online dating sites only to be bombarded with filthy comments from suspicious strangers.”
The app addresses all of these issues and removes the stigma associated with internet dating.
Since its inception, the app has risen by double digits month after month and has quickly become a favorite among women.
While the main service is free, premium features need virtual currency in coffee beans to acquire.
For instance, the most popular premium service is called ‘Open Sesame,’ and it allows you to see who your mutual friends are.
This adds to the mystery and entices users to purchase the Open Sesame function, which costs approximately 95 coffee beans (approximately $0.50 in actual currency).
The software sorts match based on user data using a proprietary machine-learning algorithm. All users must sign up via Facebook, and the algorithm is built on Facebook data.
No additional questionnaires or features are utilized to collect data at this stage, streamlining the signup process and keeping processing time to a minimum.
“The objective is to avoid requiring someone to go through a separate application process,” Kevin explains.
“Exactly,” declare the sisters virtually in unison.
Following an amazing presentation and analysis of how the product operates, the sharks delve into the dating app’s financial information.
- Between 100,000 and 500,000 monthly users
- Annual revenue: $87,000 last year; $270,000 for the first five months of this year.
- Annual revenue projections: $1 million this year; $10 million the following year
- Cost of acquiring a customer (CAC): $0.30
- Negative profit margins
The sisters refuse to disclose the precise number of monthly customers, claiming that doing so would jeopardize their competitive position, yet they are puzzlingly ambiguous on this subject.
They say that it provides an accurate picture of the user base, but it most certainly does not. Mark Cuban withdraws on principle following a relentless grilling by the sharks. “I’m leaving.
“I’m leaving,” he declares. Are you serious? Do you have to give us that? The sisters appear unconcerned and continue to make inquiries.
As it turns out, their profit margins are negative, which means they are currently losing money. They were had to spend a large sum of money upfront, primarily on salary for their web engineers.
This includes paying each of them a $100,000 salary. The sharks appear bemused by this number.
“That is still a huge wage drop compared to what we were earning previously,” Dawoon observes, to which Robert reacts with contemptuous laughter.
The sisters have earned $2.8 million in outside finance yet, with one notable investor being one of Match.com’s co-founders, who fell in love with their concept.
However, while they are amassing wealth, they are not creating any.
They intend to break even on a predicted $10 million in income, but here’s why: they intend to add 4 million customers next year, who will generate approximately $2.50 per subscriber – therefore the $10 million. They intend to spend approximately $3 million on marketing.
“We decide to increase investment now to expedite growth,” Dawoon maintains.
Robert asserts that they are an all-or-nothing proposition. They are losing so much money that they are no longer in the business of producing money but rather of attracting users.
They definitely must hit a home run to succeed, and Robert is unwilling to take the chance. He is the first to withdraw.
Kevin is the next to speak, stating that one of the things he’s learned after six seasons on Shark Tank is how extremely valuable he is.
And it’s turned him into an extremely greedy individual. “I don’t do 5% deals,” he explains. “That is of no value to me. I’m leaving.”
Lori follows up, stating that the combination of their extremely high salaries from their firm and the internet’s high propensity for stealing ideas and business models makes her wary of investing.
Barbara admires their fundraising prowess and believes their website is necessary. (And she is correct.)
The market for this is unquestionably there, and women truly do require a place where they may feel more than a piece of meat.
As much as she admires the concept, the investment entails much too much risk for far too little reward. She is next to the exit, leaving only Mark Cuban.
“Permit me to ask you a question,” Cuban says. “Would you accept $30 million for the company if I offered it to you?”
The sisters’ jaws widen in surprise.
They regain their composure quickly, though, and are quick to respond with an emphatic “No.”
“While $30 million may seem like a lot of money, Match.com generates $800 million in annual revenue. We believe we are on course to surpass Match.com in size.”
And with that, the Kang sisters boldly exit the stage and permanently disappear from Mark’s life.
Final Deal — The largest offer in Shark Tank history has been rejected.
Coffee Meets Bagel After Shark Tank Update
The Kang sisters raised $23.2 million in five investment rounds after appearing on Shark Tank’s Coffee Meets Bagel episode.
The app is still available on Android and Apple smartphones and has a user base of ten million — but it appears to be failing in general. The sisters’ aim of commercial supremacy has not come to fruition.
Coffee Meets Bagel barely cracks the top twenty when it comes to the top-ranked and most popular dating sites.
Coffee Meets Bagel’s website appears minimal, indicating that their focus has turned away from women and towards young professionals “from the world’s wealthiest countries.”
Bumble and Zoosk, two dating apps geared toward women, were probably responsible for this adjustment and pushed them on.
It appears that the Kang sisters must have accepted Mark’s offer since the site has fallen to the bottom of the online dating barrel. They could have at least purchased an unlimited supply of bagels with the funds.
More than 250 marriages have been arranged through the Kang sisters’ app, and at least 25,000 partnerships have been started through matches.
The sisters can be proud to bring people together and provide a path to one of the most competitive online marketplaces. Indeed, money and happiness go together like peanut butter and jelly.