Vanity metrics like total revenue can be misleading. A startup might acquire many low-priced, low-usage customers without solving a core problem. Deep, consistent user engagement statistics are a much stronger indicator of genuine, 'found' demand than top-line numbers alone.

Facing lawsuits from 13 attorney generals, Grindr's new owners hired the retired Head of Global Privacy from Yahoo. On his first call, the AGs recognized him and his reputation. This single "talent upgrade" signaled the company was now run by professionals, leading 12 of the 13 AGs to effectively drop their issues.

Aggregate profitability can mask serious issues. A company's positive bottom line might be propped up by one highly profitable offer while another "bestseller" is actually losing money on every sale. This requires a granular, per-product profitability analysis to uncover.

Grindr's new owners identified that the app had not implemented any of the successful product and monetization strategies proven by Tinder. Simply applying this known playbook—like introducing boost features, optimizing pricing, and improving buy flows—provided a clear path to doubling revenue in under three years.

Grindr's buyers capitalized on a market inefficiency where traditional PE firms, despite strong financials, avoided the deal due to its association with the gay community. This "homophobia discount" allowed them to acquire a highly profitable asset for at least 50% less than its market value.

Grindr had a stack of issues: a privacy lawsuit, Chinese ownership (CFIUS), a PR problem, and homophobia. While most investors flee "one-problem" deals, this combination scared off nearly everyone, creating a massive opportunity for buyers who weren't deterred by the complexity.

Counterintuitively, the best sales leaders often come from companies with mediocre products. Their ability to hit numbers despite a weak offering demonstrates exceptional sales skills, which are then amplified when they are given a great product to sell.

The strategy of eliminating the "worst 20%" applies across the business. Beyond firing unprofitable customers, analyze your product lines and even your team. Discontinuing low-margin, high-hassle products or removing toxic employees can free up immense resources and improve overall business health just as effectively.

Apps with questionable premises, like gambling to pay off debt, often receive public scorn on social media (e.g., extremely low like-to-view ratios). This negative sentiment is a poor predictor of success, as these apps can quietly build massive businesses by serving a real, albeit hidden, user need.