In the previous post I talked about the many location-aware services that have been introduced recently, and why the do not seem to get much traction. One happy exception seems to be Skout, which started out as a general location service but morphed into a youth-oriented dating/flirting app. Skout just received a $22 million round of funding, which indicates that the race in location is far from over! One unique aspect of Skout is how they make money - not from the advertisement or coupons that many others are targeting, but from in-app purchases of gifts, avatars, etc. Furthermore, by focusing on a particular demographic and domain they seem to have gained traction where many other, more general-purpose location apps have failed. After overcoming their rough patch, Skout now claims to be growing with 1 million users per month - the same rate as Foursquare! And of course, even though the company is based here in Silicon Valley, I am particularly happy in the knowledge that the founders, Christian Wiklund and Niklas Lindström are Swedish, just like me!
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