SAN DIEGO, CALIF. (TheStreet) -- You can chuck Tinder's supposed $1 billion valuation out the window, because Interactive Corporation (IACI) Chairman Barry Diller pays absolutely no heed to how the outside world values his company's hotter-than-hot, swipe-to-match mobile dating app.
Not only does IAC proudly own Tinder (reportedly 60%) but the media conglomerate is content financing the app's growth in-house, minus the interference of the venture capital world and its extra bubbly valuations, Diller made clear Wednesday afternoon at the Business Insider Ignition Conference in New York.
Two-year-old Tinder came to life as a product of IAC's Hatch Labs, a now defunct mobile incubator. Seemingly overnight, Tinder cropped up on college campuses and spread its swipe-right-to-like dating service around the globe. As of September, Tinder had been downloaded more than 40 million times, and its users are now swiping right or left more than 1 billion times per day, Diller said. The IAC entity also just recently started playing with in-app upgrades to capitalize on its popularity.
The application's founding narrative is one filled with controversy -- well, not if you ask Diller. That story is pretty simple. In his words, Tinder is a rare success that came out of a "little incubation group" that the company set up three years ago to experiment with mobile products. And Tinder is most certainly not a startup.
"[Tinder is] not a VC model, because we're not a VC," Diller said. "We're not, every three months, creating a new faux value for it because we don't ... need any money. We're perfectly happy to finance it all ... we're not setting valuations relative to that."