SeatGeek is an online ticket marketplace that allows users to buy and sell tickets for sports, concerts, theater and other live entertainment events. The company was founded in 2009 by Jack Groetzinger, Russ D’Souza and Eric Waller. In 2016, SeatGeek received a major investment from venture capital firms Accel and Causeway Media, which valued the company at around $400 million.
SeatGeek’s Founding and Early Investors
SeatGeek was founded in 2009 by three entrepreneurs – Jack Groetzinger, Russ D’Souza and Eric Waller. The company was initially bootstrapped by its founders before raising its first major round of funding in 2012. Here are some key details about SeatGeek’s early investors:
- 2012 – Raised $2 million in seed funding led by Accel Partners, with participation from Founder Collective, Eniac Ventures and Advancit Capital.
- 2014 – Raised $35 million in Series A funding led by Technology Crossover Ventures, with participation from Accel and Founder Collective.
- 2014 – Raised additional $20 million in secondary funding from Asset Management Ventures, Atlas Ventures and Craft Ventures.
So in the early years, SeatGeek was primarily backed by venture capital firms like Accel Partners, Technology Crossover Ventures, Founder Collective and others. The founders and these VC investors owned the majority of the company at this stage.
Majority Acquisition by Top Tier Sports
In 2016, SeatGeek received a major investment from Top Tier Sports that valued the company at around $400 million. Top Tier Sports acquired a majority stake in SeatGeek, but the founders and employees retained a minority ownership.
Here are some key details about this deal:
- Top Tier Sports is a sports-focused investment firm led by Jamie Salter.
- The $400 million valuation was more than 6 times SeatGeek’s prior valuation of $62 million.
- Top Tier Sports acquired a 51% majority stake in SeatGeek for approximately $200 million.
- SeatGeek founders and employees retained a 49% minority stake valued at $200 million.
- This deal provided major growth capital to expand SeatGeek’s platform and brand.
So in 2016, SeatGeek took on a new majority owner in Top Tier Sports while existing shareholders maintained a substantial minority position. This gave Top Tier operational control while still allowing founders and early investors to benefit from SeatGeek’s continued growth.
Ownership Breakdown After Top Tier Sports Investment
Owner | Ownership Percentage |
---|---|
Top Tier Sports | 51% |
SeatGeek Founders & Employees | 49% |
Further Growth and Expansion
Since the Top Tier Sports deal in 2016, SeatGeek has continued to grow rapidly, raising additional funding, expanding globally and acquiring other companies. Some of the key developments include:
- 2017 – SeatGeek acquired Israeli ticketing startup TopTix for $56 million to expand its international presence.
- 2018 – Received a $57 million secondary investment led by Glynn Capital, Accel and Causeway Media.
- 2019 – Received $150 million in primary funding from Goldman Sachs, Accel and Glynn Capital.
- 2019 – Acquired British ticketing company Ticketbis in a deal reportedly valued around $170 million.
This additional funding and the strategic acquisitions have helped SeatGeek grow its platform’s capabilities and expand globally into new markets. The company is now established as a major player in the online ticketing industry.
SeatGeek’s Current Ownership Structure
Based on the available information, SeatGeek’s current ownership structure is likely as follows:
- Majority owner continues to be Top Tier Sports with 51% ownership.
- SeatGeek founders and early employees hold around 20-25% minority stake.
- Accel, Glynn Capital and other early VC investors hold a combined 20-25% stake.
- Goldman Sachs holds a small but significant stake after its 2019 investment.
So while Top Tier Sports remains the majority owner, SeatGeek also has substantial minority shareholders who have invested and supported its growth over the past decade to becoming a leading online ticketing marketplace.
SeatGeek’s Business Model and Revenue Sources
In addition to its ownership structure, it’s helpful to understand SeatGeek’s business model and revenue sources. This gives insight into how the company generates value for its owners.
SeatGeek operates a two-sided online marketplace connecting ticket buyers and sellers. The company generates revenues in four key ways:
- Convenience fees – Charges a fee to ticket buyers for using the marketplace, typically 10-20% of ticket cost.
- Seller commissions – Takes a 15% commission on tickets sold by sellers.
- Advertising – Sells ad space on its website and apps to event sponsors, teams, venues, etc.
- Partnerships – Gets paid by teams, venues and other partners for driving ticket sales on their behalf.
This marketplace model has allowed SeatGeek to grow rapidly. The company reportedly generated over $250 million in transaction volume in 2018. And with over 50% year-over-year growth, total transaction volume likely exceeded $400 million in 2019.
Estimated Breakdown of SeatGeek’s 2019 Revenues
Revenue Source | Estimated Percentage |
---|---|
Convenience Fees from Buyers | 55% |
Seller Commissions | 25% |
Advertising & Sponsorships | 15% |
Partnerships | 5% |
With strong growth, an expanding global presence, and a proven business model, SeatGeek appears well-positioned to continue providing value to ticket buyers and sellers while generating solid returns for its majority and minority investors.
Conclusion
In summary:
- SeatGeek was founded in 2009 and backed early on by venture capital investors.
- In 2016, Top Tier Sports acquired a 51% majority stake in the company.
- SeatGeek has continued to grow through funding, acquisitions and global expansion.
- Top Tier Sports remains the majority owner, but SeatGeek also has substantial minority stakeholders.
- The company operates a two-sided online ticket marketplace, earning revenues from fees, commissions, advertising and partnerships.
So while SeatGeek started out as an entrepreneurial startup, it is now majority-owned by the big-money investors at Top Tier Sports. However, SeatGeek’s founders and employees still own a sizable minority stake. This shared ownership, along with SeatGeek’s strong growth and innovative ticketing model, has created major value for investors while transforming the live event ticketing landscape.