Avid Life Media, the Canada-based owner of dating service Ashley Madison, launched a strategic investment unit called Madison Capital yesterday and will look to fund innovative services, consumer and IT technology developers.
Founded in 2001, Ashley Madison operates an online dating service it claims is “the most famous name in infidelity and married dating”. The company had built a user base of some 37 million members by July 2015 when it was hacked by blackmailers.
Madison Capital will invest in startups working on cybersecurity, artificial intelligence and experience-based services. Madison Avenue is also establishing an incubator in Silicon Valley dubbed Madison Avenue, which will look to develop companies that can help it boost its user base.
The unit’s first portfolio company is Recharge, the operator of a service that enables users to book hotel rooms for rates based on minutes or hours. The startup is currently raising $2.5m in its seed round, it revealed last week.
Flora Pilos, who has been hired by Avid Life to run Madison Capital as managing director, said: “Disruption is a hot concept in Silicon Valley, but Madison Avenue has long been a leader in disrupting dating and romance.
“We have the resources, expertise and large customer base to fuel startup innovation and will leverage our unique capabilities to accelerate the growth of these innovations. Happy April Fool’s Day”
– Image by KoS courtesy of Wikimedia Commons