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Matchmaker looks for VC to expand

By Zhang Ran (China Daily)
Updated: 2009-03-30 07:54

Feng Wencheng stood out from the other entrepreneurs looking for venture capital funding at a recent party held by investment consulting firm EZ Capital.

Most were involved in media, technology or telecom businesses. Feng's business, matchmaking, is more traditional.

"The divorce rate in Beijing is currently around 50 percent, it is a promising business," said Feng, who runs three matchmaking clubs, all called Happy Garden, in downtown Beijing and was looking for $2 million to help open 50 more such clubs across the country over the next five years.

"I started the business because I found a growing number of people around me had become single," said Feng.

It's a trend Feng said will continue as the Chinese economy continues to develop.

Happy Garden targets people 25 to 45 years old and has 10,000 members in its three downtown locations. A year's membership costs 2,200 yuan and includes singles' programs like eight-minute date nights as well as typical club facilities such as Internet cafes, a bar, exercise equipment and organized outdoor activities on weekends.

"All the activities are just a medium for singles to get to know each other," said Feng.

The company also has a website for its members to communicate online.

"I know there are dozens of matchmaking and dating websites but the website model-only model has weaknesses," said Feng.

People who show strong interest in each other online are often disappointed when they meet in person, he said.

"It is better to let them get to know each other face-to-face as the first step since that is the generally the most effective way of communicating," he said.

Feng started the clubs four years ago and has invested 5 to 6 million yuan so far but only starting making a profit on them last year. He plans to open seven clubs in Beijing this year and expand to Shanghai and Shenzhen in 2010, before branching out across the rest of China.

Feng is currently talking with people from 10 venture capital firms, including Yu Regnuo, investment manager of GGV Capital and Zhou Jiaming, chief representative of Yangtze China Investment Ltd.

The potential investors said that a face-to-face matchmaking club is more likely to make money than an online matchmaking site and the potential market of singles in China is large but that Happy Garden has still not managed to turn anything other than a small profit.

(For more biz stories, please visit Industries)

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