88rising investor Atwater racks up $100m in funding
Atwater Capital, a media and entertainment-focused investment firm, has drawn funding from investment behemoths Goldman Sachs Petershill and KKR.
According to the company, the funding will increase the total backing of Atwater’s new Atwater Capital Fund I, LP to over $100 million.
Atwater’s portfolio includes 88rising, a US-based artist management company, record label and media brand focused on Asian and Asian American artists that hosts the Head in the Clouds festival in Los Angeles and now, Jakarta, Indonesia.
The firm is also a backer of Swedish royalty-free soundtrack provider Epidemic Sound, and wiip Productions, the independent studio behind TV shows such as Mare of Easttown and The Summer I Turned Pretty, among others.
Atwater was founded in 2017 by Vania Schlogel, who sits on the board of Epidemic Sound as a director. She previously served as its chairwoman from 2017 to January of this year, when she was succeeded by former Shazam boss Andrew Fisher.
“It is a hugely exciting time to be investing in media and entertainment, an asset class which is acyclical and buoyed by both digitisation and significant growth in global demand,” says Schlogel.
“We view the commitments from these two blue-chip financial institutions as a strong confirmation of [our] long-term vision”
“We are delighted to be able to partner with Goldman Sachs Petershill, a recognised leader in sponsoring and supporting private equity firms globally, alongside the world-class team at KKR, as we launch our inaugural fund. We view the anchor commitments from these two blue-chip financial institutions as a strong confirmation of the long-term vision that we have for the Atwater platform.”
Schlogel served as a former member of KKR’s Private Equity team from 2009 to 2014, specialising in the media sector. She is also known as the former chief investment officer of Roc Nation, and the CIO of another then-Jay-Z-owned company, TIDAL.
“We are delighted to invest with Vania and her team as they identify and back a group of extraordinary media and entertainment entrepreneurs,” says KKR partners Philipp Freise and Ted Oberwager.
Alisa Amarosa Wood, partner at KKR, adds: “This is the continuation of the great relationship we have built over many years of collaboration with Vania – from her time at KKR and beyond. She shares our values, our partnership-oriented approach, and we are truly thrilled to be investing alongside her in this new endeavour.”
Christian von Schimmelmann, co-head of Goldman Sachs Petershill, adds: “We have a history of partnering with successful private equity firms globally and are excited to welcome Atwater as a natural addition to the Goldman Sachs Petershill family.”
“We look forward to providing strategic support as Atwater builds upon its history of investing in groundbreaking people and the companies they operate.”
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Live Nation invests in reusable cup system Turn
Live Nation has made a strategic investment in Turn Systems, which operates a leading reusable cup system.
The system, launched in Australia and New Zealand in 2012, includes reusable cups, collection bins and mobile washing systems powered by an incentive-based software offering.
According to the company, a single reusable Turn cup has the potential to displace up to 100 single-use cups and can break even on its environmental impact in as few as three uses.
Live Nation has already deployed the Turn System at several recent events, including Bonnaroo Festival in June where the programme was deemed “a huge success” after fans returned 88% of the cups.
The live entertainment giant will now begin rolling out Turn Systems across a number of festivals and venues this year, including major events such as Lollapalooza, Sea.Hear.Now, and Austin City Limits Festival, with the aim to displace more than 1 million single-use cups this year.
Michael Rapino, president and CEO, says: “By investing in Turn, Live Nation is able to make events at our venues and festivals more sustainable. By rolling out real-world solutions at scale we hope this helps the whole industry find solutions.”
“We will use our venues and festivals to demonstrate the effectiveness of large-scale reuse programmes”
According to a recent study by Live Nation, live music goers are eager to play a bigger role in protecting the environment with 82% saying they strive to maintain an environmentally sustainable lifestyle.
Lucy August-Perna, director of global sustainability, adds: “We know that live music goers are motivated to engage in sustainable practices at live events, and so we want to make sure we’re providing sustainable options for fans that are easily accessible and convenient to use. With our investment in Turn, we will use our venues and festivals to demonstrate the effectiveness of large-scale reuse programmes with the hopes of inspiring more rapid adoption of solutions that tackle the global waste and plastic pollution challenge.”
Ryan Everton, founder and CEO of Turn Systems, comments: “To mitigate the worst effects of the climate crisis, we need to take meaningful steps to reduce carbon emissions, divert waste from landfills and oceans, and create circular economies at scale. We are thrilled to partner with Live Nation to move the needle forward in achieving these ambitions. By deploying Turn across Live Nation’s extensive reach, we hope to not only reduce the environmental impact of these events but also to inspire others to take climate action at their own events and in their daily lives.”
Live Nation’s pledge to eliminate single-use plastics from its own events is a key pillar in the company’s overall Green Nation global sustainability programme.
Also furthering this effort, the company’s partnership with Liquid Death canned water helped avoid the usage of over 5 million plastic bottles so far, according to Live Nation.
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EQT latest private equity firm to enter touring biz
EQT has become the latest private equity firm to enter the international touring business, following in the footsteps of companies like Silverlake, Yucaipa, Providence and Waterland.
The ‘purpose-driven global investment organisation’ today (19 July) announced that the EQT X fund has agreed to become a strategic investor in UTA.
Under the transaction, the UTA partnership and leadership continue to hold the controlling interest in the company, with EQT becoming the largest outside shareholder.
Investcorp, a global alternative investment firm that invested in UTA in 2018, will sell its full minority stake to EQT, and EQT will also purchase a portion of existing stakes from continuing shareholders including PSP Investments.
According to a release, EQT’s financial resources, expertise in capital markets, in-house digital team and global footprint will help fuel UTA’s next phase of investments in talent, innovation and international expansion.
Jeremy Zimmer, CEO of UTA, says: “EQT is the perfect partner for UTA’s next phase of growth. They have deep international capabilities, a strong balance sheet, and most importantly they truly appreciate and respect the culture that we have built at UTA.
“David Kramer and I led this process, and we made sure to listen to our instincts about who we felt would really help us drive growth while protecting our culture. We believe that we found the right partner to maintain that balance.”
“EQT is the perfect partner for UTA’s next phase of growth”
Kasper Knokgaard, EQT partner and global head of the services sector team, adds: “EQT invests in industry-leading platforms that are well situated for strong and sustained growth across economic cycles, are aligned with our values, and where we know we can create significant value –UTA checks all the boxes.
“We are excited to partner with Jeremy Zimmer and the entire team to accelerate UTA’s growth trajectory and enable more opportunities across entertainment and media.”
Dave Tayeh, head of private equity – North America at Investcorp, comments: “Our investment in UTA was highly successful and we are proud to have partnered with the UTA team as they achieved exceptional growth over the past four years. The company has strengthened its position as a market leader and we wish the team and EQT continued success.”
Martin Longchamps, MD at head of origination and execution at PSP Investments, says: “Since our original investment in 2018, PSP Investments and Investcorp have been working closely with Jeremy Zimmer and his management team to continue to strengthen UTA’s exceptional market position.
“During this time, UTA has proven its abilities to perform, innovate and diversify as a leading entertainment company. We are excited to continue this journey with UTA and to welcome EQT. Together, we will be a driving force in supporting UTA’s long-term growth.”
EQT has €77 billion in assets under management across 36 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately €29 billion and more than 280,000 employees.
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Live audio tech provider Mixhalo raises $24m
Live audio tech service Mixhalo has raised US$24 million in a series-B funding round.
The funding, which follows a $10.7m series-A round in 2019, will primarily go towards new hires and research & development.
The San Francisco-based startup was founded in 2016 by Incubus guitarist Mike Einziger and violinist Ann Marie Simpson-Einziger with an initial goal to bring better sound quality to concerts.
Instead of hearing music blasted out of speakers, users can connect their smartphone to a network (the startup creates its own wireless channel that doesn’t rely on the venue’s potentially overloaded Wi-Fi or cell networks). Then, through their earbuds, they’ll hear the same sound mix that the musicians receive through their in-ear monitors.
The San Francisco-based startup was founded in 2016 with an initial goal to bring better sound quality to concerts
Clients and partners to date include Aerosmith, Charlie Puth, Incubus, Metallica, Sting, Staples Center (soon-to-be Crypto.com Arena), and multiple venues housing NBA and NHL teams.
Mixhalo’s latest funding round is led by Fortress Investment, the firm behind TSX Broadway, a Times Square-based retail complex that features an outdoor stage. Mixhalo’s technology will be integrated into the space’s venue.
Another new major investor is pro audio sound system manufacturer L-Acoustics, which will now be Mixhalo’s exclusive professional audio partner.
Mixhalo’s series A investors also contributed to the series-B round, including Foundry Group, Sapphire Sport, Founders Fund, Defy Partners, and Another Planet Entertainment.
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UTA invests in livestreaming service Moment House
Moment House has received US$12 million in new funding from investors including UTA Ventures, the investment arm of United Talent Agency, artists Halsey and Kaytranada, and Max Cutler, founder of podcast studio Parcast and head of new content for Spotify.
The series-A funding round, led by venture-capital firm Forerunner Ventures, also includes design firm Ideo, actors Whitney Cummings and Tom Felton, artist manager William Robillard-Cole, and YouTuber and comedian Noel Miller.
LA-based Moment House, which powers ticketed livestreamed ‘Moments’ for leading musicians and entertainers, has processed more than million tickets across 168 countries since its launch in 2019. It has worked with artists including Tame Impala, KSI, Halsey, St Vincent, Kygo, Kaytranada, Brockhampton, Grouplove, Yungblud and Justin Bieber.
The new investors join existing backers including high-profile artist managers Troy Carter, Scooter Braun, Myles Shear (Kygo), Austin Rosen (Post Malone), as well as actor Jared Leto, UnitedMasters’ Steve Stoute, Patreon CEO Jack Conte and ex-TikTok CEO Kevin Mayer.
“This fundraising round allows us to execute on our ambitious product roadmap”
“We’re excited to welcome more top tech and entertainment leaders to Moment House as we continue empowering creators to deliver special live experiences to their worldwide communities digitally,” says Moment House co-founder and CEO Arjun Mehta.
“This fundraising round allows us to execute on our ambitious product roadmap, which involves deepening the consumer social experience, and on the supply side, opening up the platform so that any creator in the world can easily make a Moment.
“Everything we have done so far is just step one of a much bigger plan to help build the ‘metaverse’.”
Upcoming shows for Moment House, which recent made a string of senior hires, include Halsey, Tinashe, Michelle Branch, Louis the Child, the Tiny Meat Gang Podcast, the Small Town Murder podcast and more.
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WME investor GIC buys Eventbrite stake
Singaporean sovereign-wealth fund GIC has acquired a 5% stake in Eventbrite.
According to a recent filing with the US’s Securities and Exchange Commission, the self-service ticketing firm has sold 3,813,791 shares, or 5.05% of the its class-A common stock, to GIC (Government of Singapore Investment Corporation), which is wholly owned by the sate of Singapore.
GIC joined forces with the Canada Pension Plan Investment Board in 2017 to invest a combined US$1 billion in WME-IMG (now Endeavor), acquiring roughly 8% of the agency group’s shares, while another Singaporean government-owned fund, Temasek, owns a stake in CAA.
“As restrictions on in-person gatherings eased during Q2 2021, Eventbrite’s creators and their audiences re-emerged in force”
According to the filing, which is signed by GIC senior vice-presidents Celine Loh Sze Ling and Diane Liang, 3,738,791 of the shares acquired by GIC have sole voting power, while the remaining 75,000 have shared voting power with the Monetary Authority of Singapore.
Eventbrite’s share price fell slightly, to $17.69, on news of the transaction, on 13 August, though it remains up around $8 year on year.
Earlier in August, Eventbrite reported a second-quarter net loss of $20.54 million, narrowing from -$38.59 million in Q2 2020. While it continues to face a “significant impact” from the coronavirus pandemic, paid ticket volume is picking up, the company said in its most recent earnings statement. “As restrictions on in-person gatherings eased during the second quarter of 2021, Eventbrite’s creators and their audiences re-emerged in force,” according to Eventbrite CEO Julia Hartz.
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Silver Lake, Roc Nation invest in merch company Fanatics
Sports merchandise company Fanatics has raised US$325 million from investors including Jay-Z and his company Roc Nation, a joint venture with Live Nation, and private-equity company Silver Lake Partners, which owns shares in TEG, WME, Oak View Group and Madison Square Garden Company.
Headquartered in Jacksonville, Florida, and with international offices in Tokyo and Manchester, UK, e-commerce giant Fanatics sells officially licensed products for the National Football League, Major League Baseball, the National Football League, Nascar and more, and also operates several bricks-and-mortar shops.
The new funding will be put towards launching a non-merchandising division focusing on ticketing, gaming, media and sports betting, according to the Wall Street Journal. The company recently launched a company focusing on NFTs (non-fungible tokens), Candy Digital, and also has a partnership with leading esports competition Overwatch League.
The new investment values the company at more than $18 billion, the WSJ reports. The company expects to make $3.4bn in revenues in 2021.
Last week, the company hired Dan Goldberg, formerly of Warner Music Group, as senior vice-president for music and entertainment development, signalling its intention to branch out beyond sports apparel into music merchandise.
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Ben Lovett, IE Music invest in new D2F platform
Planet, a new direct-to-fan (D2F) live music platform, launches today (26 July) with investment from Ben Lovett, member of Mumford & Sons, co-founder of Communion and CEO of Venue Group, and IE Ventures, the investment arm of artist management company IE Music (Robbie Williams, Passenger, Cher Lloyd).
Founded in early 2020 by James Morrison, former senior director of global partnerships for AEG, Planet enables artists to sell tickets, products and fans directly to fans, who in turn can influence “everything from tour locations to support acts”, according to the company, which describes itself as a “crowd-powered community where artists and fans come together as a collective”.
“Now is the moment to put fans back at the beating heart of live music” says Lovett, whose Venue Group added its latest property, the Social in London, late last year. “Planet has been designed to bring music fans and artists closer together, providing a platform for artists to build a deeper understanding of their fans wants and needs.”
The new company’s website, planet.fans, is powered by an insights engine dubbed the Beat, which gathers and interprets data on consumer behaviour to provide artists with a greater understanding of their fans.
“As we emerge from lockdown … the opportunity for artists to reinvent and rewire their relationship with their biggest fans grows stronger”
Accoring to Morrison, the Beat engine helps artists plan what to ‘drop’, when to do it, and who to drop it to, “enabling artists to connect with fans more effectively and more directly in the biggest moments”.
“The more fans participate the better chance they have of getting more of what they want, like great-value tickets, backstage access and first-release drops, straight from the artist,” he explains. “As we emerge from lockdown and live events return, the demand of the crowd beats louder and the opportunity for artists to reinvent and rewire their relationship with their biggest fans grows stronger.”
The platform is starting to power artists’ early release presales from September 2021.
“We have long supported artists going directly to their fans”, says Stephen O’Reilly, managing director of IE Ventures, “largely because it improves the experience and creates new value from already captive audiences, and there’s none more so than live music fans right now, so we are looking forward to working with James and the team to understand the levels of demand for our artists as things open up.”
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TicketSwap raises $10m in first funding round
Price-capped ‘ethical’ ticket marketplace TicketSwap has raised US$10 million in new funding from Amsterdam-based venture-capital firm Million Monkeys.
TicketSwap, also headquartered in Amsterdam, will put the money towards expanding into new countries while reinforcing its presence in existing markets, the company says. TicketSwap has ticket resale partnerships with more than 6,000 events worldwide, including DGTL (Amsterdam), Sziget (Budapest) and Hellfest (Clisson, France).
“We are delighted with our first funding in the existence of TicketSwap”, says founder and CEO Hans Ober. “Instead of having to take a step back due to Covid-19, we can now accelerate our growth.
“We are expanding to new markets and improving the quality of our service. Million Monkeys has a lot of experience in building marketplaces like ours.”
“Million Monkeys has a lot of experience in building marketplaces like ours”
The funding will also allow TicketSwap to accelerate the development of new features, continues Ober –for example, new ways to handle scarce tickets for high-demand events, to which end TicketSwap is trialling a raffle technology that would allow more people to have a chance to enter and an increased chance to get a ticket.
It is also building technology to understand fans’ needs better, allowing them to recommend personalised events. “We want TicketSwap to become more than a marketplace for tickets”, says Ober. “It will be a part of the anticipation for an event or day trip. TicketSwap will develop into an app that people like to use regularly to discover new artists and shows, not just when they are looking to buy tickets.”
Over five million fans have used TicketSwap, which caps the resale price at 20% above face value, to buy and sell spare tickets since the company’s launch in 2012.
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Promoters buy into Oz ticket marketplace Tixel
Australian ticket marketplace Tixel has raised A$1.5m ($1.2m) in a funding round that includes a number of leading concert businesses and music investors.
Promoters Unified Music Group and I Oh You, labels Rose Avenue and Future Classic and investment firms Alberts and Galileo Ventures are among those who participated in the round, with Alberts CEO David Albert also set to join Tixel’s board of directors.
The funding will be put towards growing the Tixel platform and expand its product suite for event organisers, the Melbourne-based company says.
Launched in 2018, Tixel offers a ‘fair-price’ marketplace (capped at 10% above face value) for fans to buy and sell tickets to events. Most of the company’s inventory is currently in Australia and New Zealand, though it expects growth in the UK and US as in-person events return outside Australasia.
“The entire music and live entertainment industry has suffered beyond measure this last year, and our team is incredibly grateful to have been able to weather the storm,” says Zac Leigh, co-founder and CEO of Tixel. “We’re feeling optimistic about the steep uptick in demand we’re seeing on Tixel from fans wanting to see their favourite musicians, artists, comedians and sports stars.
“Our investment partners … know that a safe and honest place for fans to buy and to resell tickets is a critical need”
“Our investment partners share this optimism and know that a safe and honest place for fans to buy and to resell tickets is a critical need both today, as our plan-making remains fluid, and into the future.”
“At the heart of every investment we make is the goal to back pioneers who share our vision for a better tomorrow,” comments Albert. “A core pillar of our impact thesis is contributing to a vibrant culture. Tixel is a great example of this and sits within our arts, music and entertainment theme. It helps to bring fairness to a market that can attract exorbitant pricing, and safety to transactions that have the potential to be fraudulent.
“Having an independent ethical ticket resale marketplace in Australia can mean more fans at shows, more bar and merch sales for our venues and, importantly, an all-round better experience for everyone involved.”
Other capped-price ticket resale services active in Australia include UK-based Twickets, which launched there in 2017, and Ticketek Marketplace, which allows Ticketek customers to resell unwanted tickets.
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