New York based SeatGeek is a mobile ticketing platform that raised $238M in a privately led Series E funding round.
Accel led the round; other participants included Wellington Management, Arctos Sports Partners and Ryan Smith, founder and executive chairman of Qualtrics and founder of Smith Entertainment Group, also known as SEG.
SeatGeek’s proposed deal with SPAC reduced its value to around $1.2 billion. It was previously valued at up to $2 billion.
Fund Utilisation
The company wants to use the new money for continued investment in their employees, products, partners and Rally — their ticketing platform for personalized event experiences. They also plan to invest in SeatGeek Swaps — which is the first return policy offered by a major ticketing platform — and their enterprise ticketing software. This software is used by event organizers and venues, and provides an end-to-end ticket solution.
SeatGeek is a mobile ticket search engine and purchasing platform. It was created in 2009 by Jack Groetzinger and Russel D’Souza.
The firm provides services to over 200 clients in the sports and entertainment industries, including the New Orleans Saints, Dallas Cowboys, Arizona Cardinals, Brooklyn Nets, Cleveland Cavaliers, New Orleans Pelicans and Washington Commanders. Jujamcyn Theaters — which operates five Broadway theaters in New York — is also a client of the company.
Did The Merger Happen?
SeatGeek ended the merger with RedBall Acquisition Corp. — a Small Publicly Held Company, or SPAC, with well-known baseball executive Billy Beane among its investors — due to the difficult environment for businesses growing rapidly.
SeatGeek’s confidence comes through in their recent announcement of increased funding. The ticketing platform doubled its predicted revenue for this year with $186.3 million in net income. Their 2021 performance outperformed expectations with net revenue at $186.3 million.
Jack Groetzinger, co-founder and CEO of SeatGeek, made a statement regarding the company’s recent capital raising efforts. He said that securing $238 million in a volatile market speaks to the strength of their business and the incredible opportunity ahead. SeatGeek has ambitious plans for the future and approaches business expansion with extra diligence, care and a long-term view of success in mind. As a tech company purpose-built to reinvent the live entertainment experience, this new capital enables them to deepen their support for customers.
This is because they want to improve an antiquated industry that hasn’t changed much over time. The change in people’s attitudes has been dramatic — and it has had an effect on how they choose to spend quality time outside of their homes. This positive change was what compelled SeatGeek to continue playing an important part in making live events memorable and life-changing.
John Locke, board member of SeatGeek, gave a statement regarding the company’s recent investment. “I have been a part of SeatGeek’s board since 2014,” he said. “Since then, the company has continued to build incredible products that entertain fans and sports teams. I’m incredibly thrilled for what’s to come for the startup, and I’m grateful for the opportunity to work with the Accel family— including Arctos Sports Partners and Wellington Management — in the future.”
The company is driving change in the quickly evolving ticketing industry, according to Chad Hutchinson. He’s a partner at Arctos Sports Partners and a member of SeatGeek’s board of directors. “We expect to work closely with Jack and his team as a thought partner as they continue providing superior ticketing solutions for fans, venues and sports teams,” said Chad.
In light of recent negative changes in the stock price of Vivid Seats — a SeatGeek competitor — StubHub decided to postpone their plans to go public. Meanwhile, SeatGeParaphrase: In light of recent negative changes in the stock price of Vivid Seats — a competitor of the company — StubHub decided to postpone their plans to go public. Additionally, SeatGeek was considering going public as well; however, they too postponed their plans to monitor the public market.
