HER: Deal Memo Exercise
Just last summer (June 26, 2005) to be exact, the US Supreme Court ruled gay marriage to be legal nationwide. Now while this decision was a long time coming, this important ruling I believe will and has, exponentially opened up business opportunities for the entire LGBT market. Not to say that businesses catering to this market didn’t exist before (there have been many (i.e. Grindr, Fab.comm, Misterb&b & others which I’m not too well versed in) but I believe now they will become more and more commonplace. With this in mind, say hello to one (of the few) that is focusing on women, HER: The Lesbian App For Queer, Bisexual and Gay Women, (formerly known as Daatch)
I can’t recall how I first heard about this app, (it could have been from a blog post of some sort) but I remember wanting to check it out, only to find out it was not yet being offered in the city I was currently in. (That’s one good sign. Demand)- I’ve only just recently downloaded the App and have given it a test run here in D.C. While I’m not on the market or dating, this app still has some interesting use-cases and features for community which have caught my attention and convinced me keep it on my phone. Here I’m happy to share my analysis and #DealMemo exercise here. (Following the “Sophisticated Fundraising” ideology)
- The world will be different, the future will look LGBT friendly all over. Sexual stigma is falling. Gender fluidity, diversity and new identities are taking shape. This is a large theme which will continue into the future and these communities will grow. With the US finally legalizing gay marriage guaranteeing equal rights, this is inevitable. One market which is being underserved within the LGBT community is that of women.
- A mobile and woman created/focused solution will WIN.
- HER app will be important because it focuses on the 400 million LGBTQ women, who prior to Her, had been completely ignored. It’s time women get to enjoy the same opportunities gay men and straight people have had for years.
Some company specific info:
- Execution: CEO, Robyn Exton- “Exton herself is gay, and says her San Francisco-based team is made up of four queer women and two straight guys.” (While not knowing too many specifics on the team, reading about CEO, Robyn’s experiences pitching and seeing their passion to continue makes me believe this is a strong team with good execution and will only grow.) Traction: The app was only previously available in 7 cities, (not sure how many there are currently in) but they do have presence now in several key cities across Australia, Canada, Ireland, United Kingdom and the United States. Other important points: they’ve been through a few accelerator programs (Wayra & YCombinator)- signaling to me that they’ve had some good training, mentorship and know what they are doing.
- Competition: As of today there are no real “Lesbian-focused” dating apps. There are many apps which LGBT women can use but there are none that focus entirely on this market. This allows HER app a bit of the first-mover advantage and unique positioning.
- Capital: In March of 2015 (just last year) HER received $1 million in new funding from investors such as Reddit’s Alexis Ohanian, YC’s Garry Tan and Michael Birch. I’m sure they could use new capital to expand to new markets, work on new partnerships and monetization opportunities and grow their team. HER has lots of growth potential and I see it becoming a household name. It could also become a very attractive acquisition for other dating apps down the line.
HER is a well needed company — they are giving a space to LGBT women in a thoughtful and smart way. I’m looking forward to their growth and evolution. (If I had an extra $500k sitting around I’d totally invest) :p
(p.s. Santiago, Chile could be a very attractive market to expand into)
Originally published on Annakojzar.com
