SeatGeek is a mobile-focused ticket platform that enables users to buy and sell tickets for sports, concert and theater events. The company was founded in 2009 by Jack Groetzinger, Russ D’Souza and Eric Waller. SeatGeek has emerged as one of the major players in the online secondary ticket market over the past decade.
Who founded SeatGeek?
SeatGeek was founded in 2009 by three individuals – Jack Groetzinger, Russ D’Souza and Eric Waller. Here is some background on each of the co-founders:
- Jack Groetzinger – Groetzinger came up with the idea for SeatGeek while working as an analyst at Accel Partners, a venture capital firm. He studied engineering at MIT and finance at MIT Sloan School of Management.
- Russ D’Souza – D’Souza was working at MLB Advanced Media before teaming up with Groetzinger and Waller to start SeatGeek. He brought technology and product development expertise to the table.
- Eric Waller – Waller was an engineer at MIT and helped build the initial SeatGeek product. He oversees the company’s mobile product development.
The three founders worked together for several years to get SeatGeek off the ground before the company raised its first major round of funding in 2011.
Who are the key investors in SeatGeek?
SeatGeek has raised over $200 million in funding since its inception from a number of investors. Here are some of the company’s key investors:
- Accel Partners – One of SeatGeek’s earliest investors. Accel led the company’s $1.5 million seed round in 2009.
- Technology Crossover Ventures – Led SeatGeek’s $35 million Series A round in 2011.
- Causeway Media Partners – Boston-based investment firm that focuses on sports media and tech. Causeway led SeatGeek’s $62 million Series B round in 2016.
- Major League Baseball – MLB invested in SeatGeek’s $56 million Series C round in 2017.
- TimesSquare Capital Management – Investment management firm that participated in SeatGeek’s $149 million Series D round in 2018.
In addition to these investors, SeatGeek has also raised funding from venture capital firms like Glynn Capital Management, Entertainment Ventures and Goldstar.
What is SeatGeek’s business model?
SeatGeek makes money in two major ways:
- Fees from ticket transactions – The primary revenue stream. SeatGeek charges fees on every ticket purchased through its platform. These fees typically range from 10-20% of the ticket price.
- Sponsorships – Brand partnerships with major sponsors like Anheuser-Busch, Pepsi, GrubHub etc. who pay for marketing and promotional opportunities across SeatGeek’s platforms.
SeatGeek has built an intuitive mobile-first ticket buying experience that appeals to millennials and has struck deals to be an authorized ticket reseller for major leagues and teams. The company has seen significant revenue growth, though remains unprofitable as it continues to invest in expansion and marketing.
Who are SeatGeek’s competitors?
The online ticket resale market that SeatGeek operates in is dominated by a few major players:
| Company | Founded | Key Facts |
|---|---|---|
| StubHub | 2000 | Owned by eBay, the largest reseller in the US |
| Vivid Seats | 2001 | Chicago-based firm, acquired by private equity in 2021 |
| Ticketmaster | 1976 | Global ticketing giant, merged with LiveNation in 2010 |
| TickPick | 2011 | No-fee ticket marketplace aimed at undercutting rivals |
SeatGeek competes primarily on user experience and mobile functionality against these established players. They need to continue growing their client base and inventory to strengthen their position in the industry.
Who owns and runs SeatGeek today?
SeatGeek remains an independent company and has not been acquired by any larger entertainment or ticketing conglomerate yet. Here’s an overview of the current ownership and executive leadership:
- Jack Groetzinger is still the CEO and owns a significant stake in the company along with the other co-founders.
- Accel, Causeway Media, and MLB remain the major institutional investors.
- Other executives include:
- Eric Waller – CTO
- Zack Klima – COO
- Karl Matua – Vice President of Partnerships
SeatGeek is still run by its founders and initial team, which provides stability in vision but also limits outside experience. As the company continues to scale, it may consider bringing in seasoned executives from larger ticketing brands.
How much is SeatGeek worth?
As a privately held startup, SeatGeek’s valuation is not definitively known. However, there are estimates based on their funding rounds and comps to public companies:
- Their last funding round in 2018 valued SeatGeek at around $550 million.
- Industry experts estimate their current valuation likely ranges from $750 million to $1 billion.
- For context, SeatGeek competitor Vivid Seats went public in 2021 at a $1.6 billion valuation.
SeatGeek’s growth trajectory, partnerships with major leagues, and increasing share of the ticket resale market make it a very valuable startup. An IPO in the next 2-3 years would likely give SeatGeek a multi-billion dollar valuation.
Could SeatGeek eventually get acquired?
Given SeatGeek’s rise as a major player in ticketing, it’s very possible they get acquired at some point by a larger entertainment company or ticketing firm looking to expand in the space. Some potential acquirers include:
- Live Nation – Already owns Ticketmaster and dominates ticketing/entertainment. Buying SeatGeek would further solidify their grip on the industry.
- StubHub – eBay seems open to selling StubHub. Combining with SeatGeek would create a formidable rival to Ticketmaster.
- Vivid Seats – Recently went public and is looking to grow. SeatGeek would provide complementary offerings.
- Amazon – Has been aggressively expanding into new sectors like entertainment. SeatGeek would provide a ticketing presence.
However, SeatGeek’s management has been adamant about remaining independent thus far. Unless they get a massive $2-3 billion+ takeout offer, they likely aim to stay standalone and eventually go public.
Conclusion
In summary, SeatGeek remains an independent ticketing platform owned and operated by its three co-founders. They have raised over $200 million from investors like Accel, Causeway, and MLB. While SeatGeek could be an acquisition target eventually, the company is still controlled by its founders who aim to keep growing the business before considering potential buyout offers down the line.
