In a fast-paced world, the digital and social landscape is ever-evolving, driven by tech advancements and constantly changing user preferences. Social discovery, a concept that centers around the idea of connecting people based on their shared interests and activities, is designed to help people find like-minded individuals for romantic or platonic relationships. As this market is a crossover between dating apps and social media, we estimate the social discovery market to reach nearly $1 Billion, which accounts for 1/10 of the entire online . But what is shaping the future of this industry? From AI to Avatars, key trends are shaping the way we discover and engage with others in the digital realm. global dating market Virtual Reality and High Fidelity Avatars With the increasing accessibility and user-friendliness of VR technology, VR headsets are rapidly gaining popularity, which is leading to a surge in VR-driven social platforms. According to in 2022 the VR Headset market was $10.1B and expected to surge to $100+B in ten years.  This trend is extending to dating apps and social discovery platforms, where the exploration of virtual reality dates is underway, offering users more engaging ways to connect in digital spaces. There are no boundaries anymore with relationships, whether platonic or romantic. Last year, our portfolio company Dating.com hosted the first wedding in the metaverse - something that continues to evolve. Now people can have one on one dates or interact with an AI to develop a relationship. As this innovation unfolds, a revolutionary shift in meeting people is imminent, presenting a more convenient and enjoyable alternative to traditional in-person interactions. Market.US, With VR worlds comes the evolution of avatars. Where avatars have historically been cartoon characters, technology is transforming the experience. Users are able to create and design avatars that represent who they want to be. From facial and body traits to synthetic voices, avatars will continue to gain momentum and become a standard in many people’s lives. Avatars have no boundaries; people can create the person that they want to be without any judgments. This evolution is helping solve the loneliness epidemic while creating a new means of connection through technological innovation. This alternative avenue for socializing and discovering new connections will mark a significant shift in how people interact and engage with each other. AI Personalization and Interactions with AI People Artificial Intelligence is increasingly shaping the future of social discovery by analyzing user behavior, preferences, and interactions. AI is poised to play an even more significant role in enhancing user experiences. Looking ahead, AI is expected to take a more active role in facilitating conversations on dating platforms. By suggesting personalized conversation starters based on shared interests, AI can help users break the ice and initiate meaningful interactions, alleviating the initial challenges of connecting with someone and paving the way for an authentic, more profound connection. Imagine getting ready for a tough meeting, or a tough conversation with your ‘in real life’ partner - when someone has developed a relationship with AI, this now becomes a medium to practice and get a genuine reaction. AI learns from a user the more they interact with it so it becomes an alternative vessel for authentic communication. Anticipating the future, AI's role in predicting relationship compatibility is set to become more refined. By analyzing patterns, AI can offer users valuable insights into the dynamics of their relationships, guiding them on how to nurture and sustain worthwhile connections in a way that is authentic to them and ultimately contributing to better-informed choices. The Niche Community Uprising As X and Facebook continue to , the era of all-encompassing social networks may be slowly fading away, giving opportunity to specialized, niche communities. This shift is driven by the increasing desire of users to engage with platforms that cater specifically to their unique interests, hobbies, and passions. Rather than participating in broad, generic networks, individuals are seeking out communities that provide a more experience. One of the Social Discovery Group’s niche products, , empowers and unites individuals over the age of 40, fostering genuine connections and meaningful relationships. DateMyAge strives to provide a safe, inclusive, and engaging online platform, where mature singles can discover companionship, love, and emotional fulfillment. lose users tailored and authentic DateMyAge With nearly using online dating services, the market opportunity is great. I see the rise of niche dating and social discovery platforms capitalizing on this because these focus on catering to specific interests or communities. This development aligns with the ongoing user preference for connecting with individuals who share similar passions, emphasizing the importance of finding meaningful connections within a more specialized context. 22% of Americans Niche social discovery dating platforms offer spaces where individuals can bond over shared interests, creating a sense of belonging beyond the generic criteria often used in mainstream dating apps. Whether it's a shared hobby, a specific cultural background, or a unique interest, these communities are designed to foster deeper connections among like-minded individuals. As a result, users can anticipate a more targeted and enriching dating experience where compatibility is rooted in shared values and passions, leading to the creation of more meaningful and lasting connections. The future of social discovery is dynamic and exciting, driven by tech innovation. As these trends continue to develop, individuals, businesses, and social platforms have the opportunity to capitalize on these advancements to create a more personal and engaging experience for users worldwide.

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