SeatGeek raises $57M to acquire ticketing software company TopTix
While SeatGeek has made acquisitions before, this is its biggest, and the company funded the deal by raising a $57 million Series D led by Glynn Capital. (Previous investorsAccel, Causeway Media Partners, Haystack Partners, Mousse Partners and Technology Crossover Ventures also participated.)
We really werent thinking money, SeatGeeks Jack Groetzinger told me. (Hes pictured abovewith his co-founder, Russell dSouza.) We were in a pretty strong position, with cash on the balance sheet, but it feltlike [this acquisition] was too good to pass up.
He suggested that SeatGeek and TopTix make for a particularly good match because while his company has focused on buildingthe best consumer experience for finding events and buying tickets, TopTix works on the back end, creating the tools that allowvenues to accept tickets in fact, TopTixcurrently processes 80 million tickets a year for customers, including theRoyal Dutch Football Association, Buckingham Palace and the Ravinia Festival.
TopTix customers will become SeatGeek customers, and TopTix co-founder Eli Dagan will continue to lead the companys engineering team in Israel.
By marrying those two things together, were creating a very powerful full stack thats miles ahead of the legacy ticketing companies, Groetzinger said.
SeatGeek and TopTix were already working together on the launch of SeatGeek Open, a platform allowing sports teams and venues to sell tickets directly, so the acquisition is supposed to help the company expand Open more aggressively. (SeatGeek, which launched at the TechCrunch50 conference, previously focused on resale tickets.) Supposedly, the Open platform helpedits first customer, Major League Soccer team Sporting Kansas City, increase online sales by 61 percent fromthe previousseason.
While working with TopTixon the Sporting Kansas City deal, Groetzingersaid he got a good look at thetechnology, and he liked what he saw.
Usually when you get under-the-hood with somethinglike this, you uncover unpleasantness, he said. This was quite the opposite we were even more impressed.