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20VC: Grindr: The Most Insane Story in Startups | How the Chinese Bought and Lost Grindr | The Successful IPO with $300M Revenues and 40% EBITDA Margins | How Grindr Built a Free Cash Flow Machine

Dec 4, 2024

George Arison, CEO of Grindr and former founder of Shift, shares the wild ride of Grindr's ownership changes and its explosive growth. He reveals how the app shifted from a hookup platform to a vital community resource, driving $300M in revenue with zero marketing costs. Arison discusses the lean operations that enable a remarkable 40% EBITDA margin and critiques common startup management pitfalls. He also touches on balancing personal experiences in leadership and the potential of AI to enhance user experiences.

56:36

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Episode guests

George Arison

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Grindr's impressive operational model, with fewer than 150 employees generating over $300M in revenue, highlights the impact of effective workforce management.

Transitioning from a startup to a corporate structure poses challenges; successful leadership requires clear goals and accountability rather than micromanagement.

By evolving beyond dating services, Grindr's exploration of health and travel markets demonstrates its ambition to become a comprehensive platform for users' diverse needs.

Deep dives

Management Efficiency at Grindr

Inefficiency in workforce management is emphasized as a significant issue within many tech companies, contrasting with Grindr's highly efficient operational model. The company has managed to maintain fewer than 150 employees while achieving over $2 million in revenue per full-time employee. This contrasts with industry standards where companies often experience significant inefficiency due to poor management practices. The approach taken by Grindr includes a focus on lean operational structures and leveraging technology to optimize team performance.

Intro

4min

The Evolution of Grindr: Beyond Hookups

15min

Startup Efficiency and Management Insights

21min

Balancing Parenthood and Professionalism

10min

The Evolution of AI and Personal Aspirations

3min

Understanding the Impact of Soviet Upbringing on Freedom and Decision-Making

2min

Engaging Discussion and Exciting Sponsor Highlights

3min

George Arison is the CEO of Grindr. The app that results in 40% of lesbian and gay marriages, the average user uses the app for 1 hour per day and sends more messages on Grindr than they do Whatsapp. The company will do over $300M in revenue in 2024 with a 40% EBITDA margin. One of the insane public company success stories. Prior to Grindr, George was the Founder and CEO of Shift, which he took public in 2020.

In Today’s Episode with George Arison We Discuss:

1. Wild Story of How the Chinese Bought and Lost Grindr:

How did the Chinese come to buy Grindr and then fire the founder?
Why did the US government force the sale of the company from the Chinese?
What happened when the whole development team was in Taiwan and then resigned overnight?
George got the CEO role in Sept and the company went public in Oct. How did that all happen so fast?

2. How Grindr is a Free Cash Flow Machine:

What are the three core ways that Grindr is able to print money with a 40% EBITDA margin?
Why does Grindr not spend any money on marketing or customer acquisition?
Why does George think that most companies have way too many people?
Why does George believe that most startups are very badly managed?
What will Grindr do with the insane amount of free cash flow the company is producing?

3. Lessons Building Grindr to $300M in Revenue:

What has George done with Grindr that he wishes he had not done?
What has he not done that he wishes he had done?
Why does George not make political statements today? Does George think we have freedom of speech when CEOs face such repercussions for political views?
What does Wall St not understand about Grindr that it really should understand?

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