SILICON VALLEY GROWTH SYNDICATE ANNOUNCES INVESTMENT IN 2REDBEANS
San Francisco, CA: 2REDBEANS, the leading North American Chinese dating site for Expats, has received an investment from the Silicon Valley Growth Syndicate (SVG), an early-stage fund investing in tech-enabled companies with revenue. There are currently 100 million Chinese singles living in North America.
“We agree with Mr. Barry Diller at Interactive Corporation,” says SVG Co- Founder, Will Bunker. “Online dating is far from a saturated and mature market. There are as many dating segment opportunities as there are ideas. “
The 33-year-old “one child policy” in China has put a lot of pressure on singles regarding dating and marriage. This is a natural investment for Silicon Valley Growth given Mr. Will Bunker was a founder of the One-and-Only Network that is today known as Match.com. Mr. Bunker and his partner raised $90,000 from an angel investor and grew their dating site at a growth rate of 30 percent per month for 36 months, prior to selling to TicketMaster-City Search for $47.5 million. His expertise in this space is already paying dividends in the growth trajectory of 2RedBeans.
This demographic has a high preference to marry within its race. Specifically, 85% of ethnic Chinese in the U.S. choose to marry Chinese. They have a high disposable income, but it takes a longer time for them to find suitable mates due to their lifestyles and the scarcity of candidates. SVG believes this is a “winner take all” market, and like Friend Finder, 2RedBeans will be the biggest winner.
The Co-Founders of the company are Ms. Q Zhao, from Mainland China, who earned an EE Ph.D from the University of California at San Diego, and Mr. Paul Lo, who earned his Master’s Degree in Computer Science from Stanford University.
Ms. Zhao expects this investment will help them accelerate their already rapid growth in the America and Canadian markests. “We are at an exciting time,” said Q Zhao “where these new investment dollars allow us to double or triple revenue each quarter.”
The entrepreneur known as “Q” explained her inspiration behind 2RedBeans,”Like many entrepreneurs, I started 2RedBeans with my friends to solve our own problems, finding dates could lead to life partners,” Zhao said. The system worked for Ms. Zhao, who met her husband online through 2RedBeans. He is the Mobile Media Executive at Safeway Stores.
SVG Co-Founder Lee McNutt said, “2RedBeans is extremely capital efficient. The founders brought the company to critical mass and profitability in a few months from zero revenue.” We are blessed that many of our portfolio companies have this vital early stage characteristic.”
“Our due diligence uncovered that the overall conversion from people who register and then subscribe was very high,” said Russell Lewis, SVG Co-owner who bootstrapped his company, Rhino Linings, to a $100 million dollar a year business. “At least one known couple marry everyday based on the company’s matchmaking ability.”
The ability of 2RedBeans to generate earned media is evident. They have been featured on TechCrunch, Business Insider, The Wall Street Journal, Sina, KTSF, The Huffington Post, and numerous other media.
Co-Founder Mr. Paul Lo was the Principal Architect / Director of Engineering at Yahoo! until 2009. He built Yahoo!’s membership services from the ground up and has invented a social network aggregation platform that powers Yahoo! Updates.
Although it is not the target market, 2RedBeans is gaining subscribers from Mainland China. “We are getting wealthy women from China who pay and join. When women hit 27 to 28 years old, they want to marry if they are professional, and they want to get to North America. Chinese by nature are very shy, which decreases their opportunities to meet other people,” she explained. “We try our best to increase the interaction and in turn, to increase their chances of finding someone.” The site was first launched in 2011.
SVGS is an investor partnership providing early-stage capital to entrepreneurs with developed business plans, complete products and most importantly, revenue derived from the market place. Investments are focused in the areas of expertise that include: Consumer E Commerce, SaaS enterprise, mobile, social, transactions / commerce business, subscription models, niche markets, lead generation business, dating, business to business solutions, and cross-border opportunities.
For additional information about this topic, please telephone Lee W. McNutt at (214) 537-9311 or email Will Bunker at email@example.com