TOPLINE Two of the most popular dating apps in the U.S., Match and Bumble, are kickstarting funds to help Texans access abortion services in the wake of a controversial new anti-abortion law that effectively bans the procedure after six weeks, before many have realized they’re pregnant.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



CEO Shar Dubey, whose Match Group Inc. operates Match.com, the largest dating site in the country, told employees Thursday in&nbsp;<a href="https://twitter.com/pardesoteric/status/1433458540992073735/photo/1" target="_blank" rel="noreferrer noopener">an internal memo</a>&nbsp;that she has set up a fund for workers affected by the new legislation.



The Dallas-based company’s fund will help cover costs for workers and their dependents who need to&nbsp;<a href="https://www.bloomberg.com/opinion/articles/2021-09-02/supreme-court-ruling-on-texas-abortion-law-isn-t-death-knell-for-roe" target="_blank" rel="noreferrer noopener">travel out-of-state</a>&nbsp;in order to have an abortion, Dubey said in the memo first reported by Bloomberg.



Austin-based Bumble, the second-most downloaded dating apps in the U.S., announced Wednesday it would launch a fund to support people trying to&nbsp;<a href="https://twitter.com/bumble/status/1433194713092403202?s=20" target="_blank" rel="noreferrer noopener">access abortion services</a>&nbsp;in Texas.



Bumble said that the company will lend its support in fighting Texas’ new abortion legislation, which it called “<a href="https://twitter.com/bumble/status/1433195884435681287?s=20" target="_blank" rel="noreferrer noopener">regressive</a>” in a statement.



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



With its low taxes and affordability, Texas bills itself as&nbsp;<a href="https://gov.texas.gov/business/page/why-texas#:~:text=As%20the%209th%20largest%20economy,robust%20infrastructure%20and%20predictable%20regulations." target="_blank" rel="noreferrer noopener">a business-friendly state</a>&nbsp;and has attracted companies like&nbsp;<a href="https://www.forbes.com/sites/carlieporterfield/2021/03/02/elon-musks-spacex-to-open-a-factory-in-austin-job-posting-reveals/">Tesla</a>, Apple, Oracle and Hewlett Packard to either open offices or relocate to the state. A recent poll indicates Texas may lose out on skilled workers over the state’s new restriction abortion policy. According to a PerryUndem poll released this week, two-thirds of workers with college educations said they&nbsp;<a href="https://www.forbes.com/sites/maggiemcgrath/2021/09/02/survey-two-thirds-of-college-educated-workers--may-avoid-texas-because-of--abortion-ban/?sh=6a0f49176e4c">would not take a job</a>&nbsp;in a state that bars abortions after six weeks of pregnancy, like Texas’ new law effectively does.&nbsp;



<h2 class="wp-block-heading" id="h-crucial-quote">CRUCIAL QUOTE</h2>



“I immigrated to America from India over 25 years ago … I am shocked that I now live in a state where women’s reproductive laws are&nbsp;<a href="https://twitter.com/pardesoteric/status/1433458540992073735/photo/1" target="_blank" rel="noreferrer noopener">more regressive</a>&nbsp;than most of the world, including India,” Dubey said in the memo Thursday. “Surely everyone should see the danger of this highly punitive and unfair law … I would hate for our state to take this big step back in women’s rights.”



<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



Texas’ new abortion legislation was&nbsp;<a href="https://www.forbes.com/sites/carlieporterfield/2021/05/19/texas-bans-abortion-as-early-as-six-weeks-with-new-heartbeat-bill/">signed into law</a>&nbsp;by Gov. Greb Abbott in May, but did not take effect until Wednesday. The law bans abortion after what the bill interprets as signs of a fetal heartbeat are detected, which can be picked up at about six weeks using a vaginal ulstrasound. However, medical experts dispute that what ultrasounds pick up that early into a pregnancy is&nbsp;<a href="https://www.forbes.com/sites/carlieporterfield/2021/05/19/texas-bans-abortion-as-early-as-six-weeks-with-new-heartbeat-bill/?sh=719b67932c0f">actually a heartbeat</a>, saying it’s more likely the twitching of tissue that will later develop into a heart as it’s “electronically induced” by the ultrasound machine.” Banning abortion after six weeks, before many people realize they’re pregnant, will make about&nbsp;<a href="https://www.forbes.com/sites/alisondurkee/2021/09/01/texas-now-has-the-most-restrictive-abortion-law-in-the-us-heres-what-could-happen-next/?sh=21af77c45f0c">85% of abortions</a>&nbsp;ineligible under the new Texas law, experts say. The legislation allows private citizens enforce the law by suing anyone involved in helping procure an abortion in civil court for&nbsp;<a href="https://www.forbes.com/sites/alisondurkee/2021/09/01/texas-now-has-the-most-restrictive-abortion-law-in-the-us-heres-what-could-happen-next/?sh=21af77c45f0c">up to $10,000</a>. Abortion is a safe and common medical procedure that nearly&nbsp;<a href="https://www.guttmacher.org/news-release/2017/abortion-common-experience-us-women-despite-dramatic-declines-rates" target="_blank" rel="noreferrer noopener">one in four women</a>&nbsp;will undergo before turning 45, according to a 2017 study from the Guttmacher Institute, a pro-choice think tank.&nbsp;



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/alisondurkee/2021/09/01/texas-now-has-the-most-restrictive-abortion-law-in-the-us-heres-what-could-happen-next/?sh=285cea045f0c">Texas Now Has The Most Restrictive Abortion Law In The U.S.—Here’s What Could Happen Next</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/alisondurkee/2021/09/02/biden-vows-action-against-texas-abortion-ban-with-whole-of-government-effort/?sh=433d07936acf">Biden Vows Action Against Texas Abortion Ban With ‘Whole-Of-Government Effort’</a>&nbsp;(Forbes)



<a href="https://www.forbes.com/sites/alisondurkee/2021/09/02/florida-lawmakers-suggest-theyll-copy-texas-abortion-ban-and-other-gop-states-will-likely-follow/?sh=60e207d1bdfb">Florida Lawmakers Suggest They’ll Copy Texas’ Abortion Ban—And Other GOP States Will Likely Follow</a> (Forbes)



By Carlie Porterfield, Forbes Staff

Bumble App Photo Illustrations

Bumble, Match Launch Funds To Cover Abortion Costs In Texas

The $2.2 billion initial public offering of dating application Bumble on Thursday went off like so many before it. Bumble’s bankers upped its IPO price about 50% from an initial range to meet fierce demand for shares, but it didn’t tame the raging animal spirits of investors bidding up tech stock valuations into the stratosphere. Bumble shares skyrocketed 63% on its first day of trading, making founder and CEO Whitney Wolfe Herd, 31,&nbsp;<a href="https://www.forbes.com/sites/angelauyeung/2021/02/11/bumble-founder-whitney-wolfe-herds-fortune-rockets-past-1-billion-as-dating-app-goes-public/?sh=2996769a578d">the world’s youngest self-made woman billionaire</a>.



Add Wolfe Herd to a long line of new billionaires from&nbsp;<a href="https://www.forbes.com/sites/alexkonrad/2020/03/13/zoom-video-coronavirus-eric-yuan-schools/?sh=aaa853d4e714">Zoom’s Eric Yuan</a>, to&nbsp;<a href="https://www.forbes.com/video/6227540308001/meet-frank-slootman-the-ceo-behind-softwares-biggest-ipo/?sh=7e7a078d7010">Snowflake’s Frank Slootman</a>, Peloton Interactive’s&nbsp;<a href="https://www.forbes.com/companies/peloton-interactive" target="_blank" rel="noreferrer noopener">PTON</a>&nbsp;<a href="https://www.forbes.com/companies/peloton-interactive">+5.6%</a>&nbsp;John Foley and&nbsp;<a href="https://www.forbes.com/sites/alexkonrad/2020/12/09/billionaire-tom-siebel-does-it-again-shares-of-c3ai-soar-140-in-first-day-trading-at-ipo/?sh=1f9f27842247">C3.ai’s Tom Siebel</a>, who have all seen their fortunes soar due to piping hot IPO markets. However, instead of generating yet another big haul for a handful of Sand Hill Road venture capital firms, it was Blackstone Group, the world’s largest private equity firm, that also hit the jackpot on the IPO.



Just 15-months ago, Blackstone plowed over $2 billion of cash to take control of Bumble’s parent company, MagicLab, at a $3 billion valuation, making an unconventional investment for the $619 billion (assets) mega-firm in a mobile dating application. Blackstone’s initial investment has already returned about $2.3 billion in cash due to dividends and proceeds from Bumble’s offering and the PE firm still sits on shares worth about $4 billion.



For Blackstone’s flagship $18 billion buyout fund, BCP VII, the deal is a home run. All in, the firm has already made over four-times its initial investment, according to&nbsp;Forbes’&nbsp;calculations. The windfall is mostly housed in the fund, and others like its tactical opportunities and growth funds. But it’s hardly an aberration. Look across Blackstone’s private equity portfolio and the firm seems to be sitting on a gold mine of similar dealmaking coups in companies involving digital payments, cloud software and data.



Blackstone’s massive takeover of Refinitiv from Thompson Reuters recently merged with the London Stock Exchange. Paysafe, an online payments company that is planning to go public in a Spac deal, looks like it will yield a return of about three-times for Blackstone. Ultimate Kronos, a cloud company focused on human resources and managing employees, which Blackstone jointly owns with Hellman &amp; Friedman, is a potential mega-sized tech IPO for Wall Street to expect in coming years. Add it all up and Blackstone may about to start cashing in on a buyout fund that sets a new bar for making money at the firm.MORE FOR YOU<a href="https://www.forbes.com/sites/robinryan/2020/11/03/how-to-answer-new-hard-interview-questions-employers-now-ask/">How To Answer New, Hard Interview Questions Employers Now Ask</a><a href="https://www.forbes.com/sites/stevenbertoni/2021/01/14/why-billion-dollar-start-up-airtable-built-a-c-suite-of-outside-tech-veterans-during-covid-19/">Why Billion-Dollar Startup Airtable Built A C-Suite Of Outside Tech Veterans During Covid-19</a><a href="https://www.forbes.com/sites/emmareynolds/2021/01/14/the-wealthy-are-moving-to-these-5-us-mountains-towns/">The Wealthy Are Moving To These 5 U.S. Mountain Towns</a>



At year-end 2020, Blackstone’s BCP VII fund, which finished investing in February 2020 just as the pandemic hit, was marked at a 15% net IRR, or a 1.5-times multiple on invested capital, according to filings. Dividend recaps of Bumble and IntraFi, and the sale of Cloverleaf Cold Storage to Americold have returned over $2 billion in cash. As of the fourth quarter, the fund’s net accrued performance revenues were $688 million, filings show. Normally, it takes many years for private equity profits to be realized, but with financial markets sopping up every offering that comes down the pike, the fund is operating at a sprinter’s pace. With new bumble profits now in the bank, it already looks to be a big driver of overall profits for Blackstone in 2021.



Overall, Blackstone is benefitting from being on the right side of technology trends and possessing a portfolio loaded with companies well suited for current markets. In real estate, it says its performance is tracking 1,300 basis points above the REIT Index due to big bets on logistics and life science real estate, and an underweight position in retail and office assets. It’s flagship real estate fund BREP VIII $16.6 billion real estate fund has already returned nearly $14 billion to investors at a multiple of 2.3-times their money thanks to deals like BioMed Realty Trust, and it sits on a total portfolio valued at over $27 billion.



Coming out of the enormous disruption of the pandemic, Blackstone is beating the drum that the firm is firing on all cylinders. Now that it has listed Bumble, Blackstone’s growth equity business may be the next business to list a massive windfall as it aims to bring oat milk company Oatly public.



“For the past several years, we&#8217;ve been orienting the firm towards faster growing areas such as life sciences and those connected to the digital economy,” said Jonathan Gray, president and COO of Blackstone, in the company’s fourth quarter earnings call in late January. “These continue to be amongst the best-performing sectors of the market and were the largest drivers of appreciation in our funds, including our holdings in global logistics, digital payments and enterprise software.”



On Thursday, Blackstone shares closed above $70, near record highs, having returned over 10% year-to-date.



For more:



See Forbes’ <a href="https://www.forbes.com/sites/clareoconnor/2017/11/14/billion-dollar-bumble-how-whitney-wolfe-herd-built-americas-fastest-growing-dating-app/?sh=6ee306248b30">cover story</a> on Bumble founder Whitney Wolfe Herd, our 2019 <a href="https://www.forbes.com/sites/angelauyeung/2019/07/08/exclusive-investigation-sex-drugs-misogyny-and-sleaze-at-the-hq-of-bumbles-owner/?sh=7aaf7ba36308">investigation</a> into its culture, and <a href="https://www.forbes.com/sites/angelauyeung/2021/02/11/bumble-founder-whitney-wolfe-herds-fortune-rockets-past-1-billion-as-dating-app-goes-public/?sh=2fd03cce578d">how Wolfe pulled off</a> the company’s massive, Blackstone-backed IPO.



By Antoine Gara, Forbes Staff

Blackstone Seeks Payout From Bumble Loan Amid Online Dating Boom

The Bumble IPO And Blackstone’s Private Equity Gold Mine

Bumble Inc. filed its&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/1830043/000119312521009745/d20761ds1.htm#rom20761_6" target="_blank" rel="noreferrer noopener">prospectus</a>&nbsp;for an initial public offering on Friday morning, with financial figures for two dating apps: Bumble, the female-oriented dating app that operates in five countries including the U.S., and Badoo, a much older dating product, with a larger presence in Europe and Latin America.&nbsp;



Bumble, which boasts a feature that only allows women to make the move first, has half of Badoo’s number of monthly active users — but Bumble’s core base is much more willing to pay. Bumble had 12.3 million monthly active users as of September 2020, of which nearly 9% were paying users. Badoo, meanwhile, had 28.4 million monthly active users, of which 4.6% were paying users. In total, Bumble and Badoo had 2.4 million paying users as of September, an 18.8% increase from the previous year.



The company reported $417 million in revenue in the first nine months of 2020, with a net loss of $117 million. For the first nine months of 2019,&nbsp; the company reported $363 million in revenue, with a net profit of $68.6 million.&nbsp;



Whitney Wolfe Herd cofounded Bumble in 2014 with Russian billionaire Andrey Andreev, who had launched Badoo in 2006. Wolfe Herd and Andreev met in 2014 shortly after Wolfe Herd sued Tinder, her previous workplace, for sexual harassment, alleging that her ex-boss and ex-boyfriend had sent threats, derogatory texts and stripped her of her co-founder title. The company denied any wrongdoing. The case was quickly and confidentially settled.&nbsp;



However, Wolfe Herd faced yet another scandal, this time with Andreev, when a&nbsp;Forbes&nbsp;investigation in July 2019 uncovered allegations of a toxic, misogynistic culture in Badoo’s London office, under Andreev’s leadership. This was seemingly at odds with the female empowerment messaging and culture that Wolfe Herd had built around Bumble. The company denied the majority of the allegations, though it clarified that it had ended a company practice of naming engineering updates after porn stars in 2018. An internal investigation was launched, headed by U.K. employment law firm Doyle Clayton, which concluded “that the central allegation made by the&nbsp;Forbes&nbsp;article &#8211; that there is currently a misogynistic atmosphere at the London office is incorrect. Nevertheless, the investigation did identify a small number of current and former employees who feel that there are elements of sexism” at the company.



Four months after the&nbsp;Forbes&nbsp;story was published, private equity firm Blackstone Group announced it would acquire Andreev’s majority stake — estimated to be between 59% to 79% — in a transaction valuing the company at $3 billion. Wolfe Herd took over as CEO of both Bumble and Badoo. Though Andreev is a founder and provided the technical support behind Badoo and Bumble, he is notably absent from the company’s history in the prospectus.&nbsp;



The prospectus also includes an elaborate diagram of what Bumble’s organizational structure will look like after the public offering, which has already started to draw questions from tech pundits, with&nbsp;<a href="https://twitter.com/abdinoor/status/1350171376959807501?s=20" target="_blank" rel="noreferrer noopener">one</a>&nbsp;comparing it to a chart in the prospectus for WeWork, the real estate company that imploded right before its planned IPO in September 2019. The company did not respond to a request for comment about its organizational structure chart.&nbsp;



Prior to&nbsp; Blackstone acquiring Bumble and Badoo,&nbsp;Forbes&nbsp;found about a dozen subsidiaries tied to Badoo, based in the U.S., U.K., Bermuda, Cyprus, Malta and the British Virgin Islands. The prospectus names the former Bermuda-based parent company, Worldwide Vision Limited. There is also language about the company’s “primary taxpayer” being “domiciled in Malta.”



When Bumble’s IPO rumors first floated during the fall of last year, Bloomberg reported that the company planned to go public at a valuation of $6 billion to $8 billion. Forbes estimates that Wolfe Herd owns 20% of the company, though that figure could change after the public offering. The prospectus filed Friday does not include details on ownership stakes of investors and executives.



By Angel Au-Yeung, Forbes Staff

Bumble Presents: Empowering Connections

Bumble, The Online Dating App Where Women Make The First Move, Files To Go Public

When Whitney Wolfe Herd started planning an October launch party for a new product at Bumble, America&#8217;s fastest-growing dating-app company, she was deliberate in her choice of venue: the Manhattan space that for 57 years hosted the Four Seasons restaurant, where regulars like Henry Kissinger, Vernon Jordan, Edgar Bronfman and Stephen Schwarzman created the ultimate power lunch.
The space now has a new name, new management and a new menu. And, as Herd insists, a new perspective on business. &#8220;The power lunch is no longer just for men,&#8221; Herd announces to the mostly young, mostly female crowd, before ceding the stage to the popstar Fergie. &#8220;We all deserve a seat at the table.&#8221;
That table surely now includes the 28-year-old Herd, who has changed the tenor of dating dynamics. By letting women make the first move, Bumble has amassed over 22 million registered users, to closest competitor Tinder&#8217;s 46 million, and at more than 70% year-over-year growth, to Tinder&#8217;s roughly 10%, it&#8217;s closing the gap quickly.
Bumble began monetizing via in-app purchases only in August 2016 and crossed $100 million in sales in 2017, a figure that – aided by the introduction of tailored, hyperlocal advertising – is projected to double in 2018.
Herd turned down a $450 million buyout offer from the Match Group in early 2017, according to sources with knowledge of the conversations. And these sources maintain that Match approached the company again later in the year to discuss a valuation well over $1 billion. This 30 Under 30 honoree retains 20% of Bumble, a stake that makes her a centimillionaire. (Match declined to comment.)
It&#8217;s a stunning comeback. As cofounder and vice president of marketing at Tinder, which has reinvented how people date and mate, she was part of one of the great business success stories of the smartphone age. But then she found herself in one of the era&#8217;s great public dramas.
In June 2014, she sued Tinder for sexual harassment, alleging that her ex-boss and ex-boyfriend Justin Mateen called her a &#8220;whore&#8221; and &#8220;gold digger&#8221; and bombarded her with threatening and derogatory text messages, which she attached to her complaint. She also alleged that Tinder, owned by IAC and then by its Match Group spinoff, had wrongly stripped her of a cofounder title.
The company denied any wrongdoing, but Mateen was suspended and then resigned. Sean Rad, then the CEO of Tinder, told Forbes in 2014 that Herd bore part of the blame for the bad blood between her and Mateen. The suit was quickly settled for a sum that Forbes previously reported to be approximately $1 million. (The settlement bars the parties from discussing the case.)
There&#8217;s no question who the founder of Bumble is. Rather than sulk about Tinder, Herd decided to compete against it. In doing so, she belatedly entered one of the most crowded and established digital fields (over 90% of online dating start-ups fail) and nonetheless quickly carved out a lucrative space by focusing on the needs of one segment: women.
<div id="attachment_35221" style="width: 380px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-35221" class=" wp-image-35221" src="https://www.forbesafrica.com/wp-content/uploads/2018/02/Whitney-Wolfe-Herd-Bumble-200x300.jpg" alt="Whitney Wolfe Herd Bumble" width="370" height="555" />Whitney Wolfe Herd in the Bumble headquarters (Photo by Kristen Kilpatrick)</div>
More than 10% of Bumble&#8217;s users pay $9.99 for a monthly subscription to access perks like extra time to decide whether a suitor merits a message. At Tinder, just about 5% of users pay for a similar service, according to a report from the investment firm Jefferies. It helps, of course, that her segment also happens to represent a majority of the population.
&#8220;I just don&#8217;t harbor resentment toward anything or anywhere or anyone – I&#8217;m too busy,&#8221; Herd says. But if success is the best revenge, then nine digits in three years flat offers the kind of vindication people make movies about.
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Herd’s path to Bumble was unintended. In the months between filing suit against Tinder and settling, she experienced the sort of online abuse that&#8217;s all too familiar to women who make public sexual harassment allegations. &#8220;I was being told the ugliest things by complete strangers, and they were having full debates about me,&#8221; Herd says. &#8220;I wasn&#8217;t running for office. I wasn&#8217;t trying to be on a reality show. I was just a girl who left somewhere.&#8221;
When that abuse turned into rape and murder threats from strangers, she deleted her Twitter account. Panic attacks and paranoia followed. A Salt Lake City native who attended private school and is a third-generation legacy at Southern Methodist University in Dallas, she retreated to Texas and the family of her then boyfriend Michael Herd, who&#8217;s now her husband.
&#8220;I was broken,&#8221; she says. Trying to give some purpose to this trauma, Herd began sketching out a women-only social network called Merci, which would focus on positivity. &#8220;No compliments on physicality,&#8221; she says. &#8220;Compliments about who they are.&#8221;
Then came an unsolicited e-mail from someone with an unfamiliar address and a Russian name, Andrey Andreev. Born in Moscow and based in London, Andreev in 2006 had founded Badoo, an online dating network that is today the world&#8217;s largest, with over 360 million registered users in 190 countries.
Herd had met Andreev at a dinner in 2013 while she was at Tinder, and she&#8217;d made an impression. &#8220;To be honest, I immediately fell in love with Whitney&#8217;s passion and energy,&#8221; says the thick-accented Andreev, who has acquired a reputation as a recluse because he rarely grants interviews. &#8220;I thought she was a very cool lady and that I should be watching her very carefully.&#8221;
When she didn&#8217;t reply, his team e-mailed Herd&#8217;s lawyers, wishing her well with her legal battle and adding that he&#8217;d like to work with her. &#8220;My original idea was to get her as CMO at Badoo,&#8221; says Andreev, who&#8217;s 43.
As it turned out, Herd had plans to visit her little sister at cooking school in Paris, and she made a pit stop in London. She didn&#8217;t want any part of his job offer. &#8220;Dream on – I&#8217;m not for hire,&#8221; she recalls saying. &#8220;I&#8217;m starting a company, and I don&#8217;t want to be in dating.&#8221; She did pitch him on Merci, though.
While Andreev liked the idea of a women-centric social brand, he thought Herd should stick to her forte and his: the dating sector. They spent days walking around London&#8217;s streets and parks together, exchanging ideas. Andreev told her he wanted to pair her innate talent for marketing and branding with the infrastructure, capital and resources at his disposal after almost a decade at Badoo.
After she settled the Tinder lawsuit in September 2014 – which, conveniently, did not contain a non-compete clause – she took Andreev up on his offer. He&#8217;d make an initial investment of about $10 million for launch marketing and commit additional funds to fuel growth, taking 79% of the company. She&#8217;d be the founder, the CEO and a 20% owner, with all the autonomy those titles imply, while tapping into Badoo&#8217;s infrastructure and Andreev&#8217;s know-how.
Both have come in handy. At Badoo, Andreev has a decade&#8217;s worth of A-B tests, data on the effectiveness of various monetization efforts and experience bringing a product to scale that have no parallel in the dating market. When the time came to start charging users for in-app perks, for instance, the team at Bumble was able to develop sophisticated technology to support subscriptions from day one thanks to input from Badoo.
From September to December of that year, Herd flew between Texas and London around 15 times. She and Andreev brought in two of her fellow former Tinder executives, Chris Gulczynski and Sarah Mick, to design the new app&#8217;s back-end and user interface. (The two left Bumble in April to launch their own agency but still share the 1% of equity not held by Andreev and Herd.)
<div id="attachment_35222" style="width: 380px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-35222" class=" wp-image-35222" src="https://www.forbesafrica.com/wp-content/uploads/2018/02/Whitney-Wolfe-Herd-200x300.jpg" alt="Whitney Wolfe Herd Bumble" width="370" height="555" />Whitney Wolfe Herd (Photo by Jamel Toppin for Forbes)</div>
One night, over cocktails, Herd stumbled upon Bumble&#8217;s special sauce. &#8220;I always wanted to have a scenario where the guy didn&#8217;t have my number but I had his,&#8221; she recalls telling Andreev. &#8220;What if women make the first move, send the first message? And if they don&#8217;t, the match disappears after 24 hours, like in Cinderella, the pumpkin and the carriage? It&#8217;d be symbolic of a Sadie Hawkins dance – going after it, girls ask first. What if we could hardwire that into a product?&#8221; It was the kind of brilliant tweak that comes from someone who understands the target demographic because they&#8217;re in it.
After toying with names, the two settled on Bumble, confident that branding details like hives and bees would prove a marketing boon. The app went live in December 2014 and garnered over 100,000 downloads in its first month. &#8220;Women were ready for this,&#8221; says Dave Evans, an industry consultant who has chronicled hundreds of bad experiences women have had with men on dating apps. &#8220;Women got scared years ago. This goes way back.&#8221;
It’s 105 degrees outside Bumble&#8217;s new headquarters in an otherwise residential neighborhood in north Austin, Texas. The oppressive August heat hasn&#8217;t stopped passersby from gawking at the building&#8217;s exterior. For its grand opening, artists have covered the sunflower-yellow roof and walls with thousands of oversize pastel balloons. It looks like the inside of a gumball machine. Pedestrians take selfies in front of it; cars linger, drivers asking the name of the company inside. At Bumble, even something as ostensibly mundane as a crosstown move is a marketing opportunity.
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Bumble has 70 employees, approximately 85% of whom are women, including in all the top jobs, Andreev aside. The new office reflects that, from posters and neon signs espousing various Bumble mantras like &#8220;You&#8217;re a Queen Bee,&#8221; &#8220;Be the CEO Your Parents Always Wanted You to Marry&#8221; and &#8220;Make the First Move.&#8221; When Bumble hands out its cream-and-yellow sweaters as gifts at events – the familiar honeycomb logo on the front, along with the word &#8220;Honey&#8221; – there&#8217;s invariably a scramble.
&#8220;I think it&#8217;s part of feeling empowered, being proud enough to say &#8216;I&#8217;m on this service,&#8217; &#8221; Evans says. &#8220;On the street, if I was wearing an AdultFriendFinder shirt, it&#8217;d be a different story.&#8221;
The bee theme and Bumble&#8217;s signature yellow are front and center in the app, which works like this: When two users of the opposite sex match by swiping right on each other&#8217;s profile, the woman must send her potential date a message first or the connection is void.
By giving women control over the initial contact, Bumble feels more polite and walled-off than competitors, avoiding the unsolicited photos &#8211; including the occasional male genitalia &#8211; that plague online dating. Last year Bumble banned shirtless mirror selfies (common in male profiles on Tinder); they were the most-left-swiped photos. This doesn&#8217;t mean Bumble can prevent all abuse or unpleasant experiences &#8211; but it does undercut them.
The more controlled environment has resulted in surprising dividends. Hundreds of thousands of women indicated on their profiles that they weren&#8217;t there only for love. They also cared about friendship and career. Hence BFF, an offshoot that focuses on platonic connections between women, and Bizz, which launched officially at the October party at the old Four Seasons in New York and offers a challenge to LinkedIn, with the same women-first interface that Bumble&#8217;s users have grown accustomed to. &#8220;We&#8217;re taking out the soliciting nature and the sexism that exists in networking,&#8221; Herd says. &#8220;We think we have a chance.&#8221;
Success for these offshoots has been modest so far. Bumble BFF has been tried by over 3 million users, but just 500,000 are active in a typical month. Bumble Bizz is too new to evaluate, but like taking on Tinder with a product customized for just under half the workforce, even modest success carries huge potential.
&#8220;To be able to test at that scale is something most start-ups can&#8217;t do,&#8221; says Evans, the consultant. &#8220;They can seed that network with millions of people on Day 1.&#8221;
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Of course, there&#8217;s at least one other dating start-up that also has the scale – and enough men and women – to delve into such areas. Rad, who is still at Tinder running its mergers and acquisitions arm, Swipe Ventures, declined to comment for this story (as did Mateen). But the company is obviously taking notes on Bumble&#8217;s moves: Last year Tinder also expanded into platonic relationships with an investment in Hey! Vina, a fast-growing female-friendship network.
And then there&#8217;s the keen interest of Tinder&#8217;s parent, the Match Group, which remains the biggest player in the online-dating business in the United States. The publicly traded company, which in addition to Tinder owns Match.com, OkCupid, PlentyOfFish and other niche dating sites, would clearly like to add Bumble to its roster.
&#8220;Look, Match has been lucky, because they have 45 different brands,&#8221; says Brent Thill, who covers the dating-app market for Jefferies. &#8220;But probably the one brand that seems to have caught everyone&#8217;s imagination is not theirs.&#8221;
Herd wouldn&#8217;t comment on the attempted buyouts, but selling to Tinder&#8217;s parent and folding Bumble under the same corporate umbrella would, of course, serve as a poetic coda to the ugliness of 2014. Indeed, among those at the headquarters dedication were representatives of a high-profile Hollywood production company that is contemplating making a movie about her saga. It is, Herd acknowledges with a laugh, a pretty good story. &#8211; Written by Clare O’Connor

Tag: Bumble

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