STARTUP-REVIEW -- Dec 10 -- eHarmony was launched in August 2000 with $3M in funding and grew into a rumored $100M+ revenue established a new category. Sequoia and TCV invested $110M into the company in November 2004 and it was rumored ~$80M was used to buy out founders shares. eHarmony made its mark in the online dating landscape by establishing its brand as the site for the serious relationship seeker, particularly women and went against standard practices in the industry. Users completed an exhaustive questionnaire were fed an allotted amount of potential mates. Women didn't feel like they were being judged mainly on their photograph. By making the process so time consuming, eHarmony weeds the non-serious. On traditional dating sites, over 80% of e-mails go unanswered. eHarmony was the first site to moderate the flow of introductions. eHarmony was able to charge more and monetize women more effectively. Very vocal (success story) customers were central to establishing the eHarmony brand and providing word of mouth and PR. Offline advertising was paid for through cash generated from operations (cash flow). Other online dating companies like Match.com had largely failed at TV advertising. In the world of permission based marketing, doctors have the highest level of 'permission'. You see the doctor, he/she tells you what drug you need, you trust him/her, and you go buy it. What better person for evangelizing a dating site than a white haired doctor with a religious background. eHarmony got its first growth spurt by being featured on Christian radio program, Focus on the Family. In 2001 eHarmony struggled to acquire users but in 2002 the service produced marriages which generated PR. The positive PR fueled eHarmony's ability to graduate into radio and TV advertising, the key to its success in taking revenues to the next level. One of the themes that I see recurring in the Startup Review case studies is the importance of mainstream, offline PR to scaling an Internet business. The real people that wanted to tell their stories on TV, radio, and print made for a great human interest story. Companies that have a consumer service that naturally lend themselves to a good story are likely to see the greatest success. FULL ARTICLE @ STARTUP-REVIEW