SeatGeek Valued at $1 Billion in $238M Raise After SPAC Pullout
Ticket platform SeatGeek has raised $238 million, just two months after its bid to go public via SPAC acquisition fell apart.
The round was led by prior investor Accel, with additional money from Arctos Sports Partners, Wellington Management and Utah Jazz owner Ryan Smith. It values SeatGeek at $1 billion on a pre-money basis.
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Raising more money became a priority for the company after its SPAC deal was abandoned in June because of “unfavorable market conditions.” That deal, including cash from the SPAC and the clearing of some existing debt, carried a post-merger valuation of $1.35 billion.
“Securing $238 million in a volatile market speaks to the strength of our business and the incredible opportunity ahead,” SeatGeek CEO and co-founder Jack Groetzinger said in a statement. “We have ambitious plans for the future and are approaching business expansion with extra diligence, care, and a long-term view of success in mind.”
SeatGeek says it will use the money for day-to-day operations, partnership acquisitions and additional investment into some of its products, including its enterprise ticketing software, its day-of-game experience app and its industry-first refund policy.
Last October, SeatGeek announced it had reached an agreement to go public via acquisition by RedBall Acquisition Corp. (NYSE: RBAC), a SPAC led by Gerry Cardinale and Billy Beane. That deal was jettisoned just hours before shareholders were set to vote on it, in a decision that both sides said was mutual. (The SPAC has ceased operations following the expiration of its 24-month window).
SeatGeek had revenue of $186.3 million in 2021, $33.2 million in COVID-disrupted 2020 and $142.2 million in 2019, according to financial information released as part of the SPAC deal. The company says it is on pace to double its revenue in 2022.
SeatGeek was founded in 2009 as a mobile-first ticketing platform. The company’s prior investors include Eli and Peyton Manning; Carmelo Anthony’s Melo7 Tech; the rapper Nas; Elysian Park Ventures, the fund backed by the owners of the Los Angeles Dodgers; and Causeway, whose principals include Boston Celtics owners Wyc Grousbeck and Mark Wan.
SeatGeek was an early advocate for open ticketing networks, where fans can purchase verified tickets across many different websites and platforms, as opposed to the closed single-platform system that previously dominated the industry. The company works with more than 200 clients across sports and entertainment, including comprehensive partnerships with four NFL teams (the Dallas Cowboys, New Orleans Saints, Arizona Cardinals and Washington Commanders), and three NBA franchises (the Brooklyn Nets, New Orleans Pelicans and Cleveland Cavaliers).
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