While there’s also an interesting story to be mined about lead investor Causeway Media Partners, whose managing partner Mark Wan is one of the San Francisco 49ers’ “one percent” minority owners, the other listed investors offer an interesting take on VenueNext’s potential future beyond its current single client, Levi’s Stadium.
In a press release announcing the funding, VenueNext CEO John Paul said the funds would be used mainly to expand the VenueNext team to support deployments of venue apps for 30 different new clients before the end of the calendar year. Though VenueNext has yet to name a client other than Levi’s Stadium, its upcoming list is expected to include not just sports stadiums but entertainment venues as well, a facet which partially explains the potential investment interest for Live Nation.
Aruba Networks, now owned by HP, is the gear used in the Wi-Fi and beacon networks at Levi’s, which are integrated tightly with the app, so perhaps the Aruba investment is a small way to gain influence at venues still considering Wi-Fi infrastructure purchases. And while we caution that all this is guesswork at this point, Twitter Ventures’ interest in VenueNext is most likely related to the app’s ability to integrate live video, which at some point could conceivably come from the phones of Twitter users via Vine or Periscope. Like we said, interesting partners to have!
Much different approach
While VenueNext is still a newcomer in the stadium-application marketplace — trailing far behind established players like YinzCam and MLBAM in numbers of deployed apps — its approach to embracing a small number of fan-focused and revenue-generating features like concessions, ticketing, replays and loyalty programs is much different than most stadium apps, which have historically tried to cram as many features in as possible. VenueNext’s top calling card right now may be the in-seat food and merchandise delivery feature it implemented at Levi’s Stadium last year, impressive mainly because of its advertised ability to reach every seat in the 68,500-seat stadium (which worked pretty well for football games but not so much when hockey crowds showed up).
But what may prove more interesting and useful to other potential clients are VenueNext’s integrated ticketing and marketing-analysis features, which not only make it easier for fans to purchase and redirect tickets, but also allows teams to build databases with rich information about fan purchasing preferences.
On both fronts, VenueNext was successful at Levi’s Stadium last season, with the app accounting for more than $800,000 in food and beverage purchases (according to VenueNext) while also registering more than 200,000 unique users, who are all now a part of the Niners’ marketing database. And while the instant replay feature didn’t get as much fan traction as was originally thought, its backbone systems were impressive in action, and were witnessed last season by a weekly parade of IT guests from interested teams.
Originally conceived and funded by Aurum Partners LLC, an investment entity controlled by the Niners’ owners, VenueNext is part of a sports/technology group of investments by Causeway (including SeatGeek), a boutique-ish firm whose partners have a long history in investment and finance, including being owners of the Boston Celtics. Wan will also join VenueNext’s board as part of the investment round, according to VenueNext.
UPDATE: Wan wrote a post on Medium about the investment.
(VenueNext image parade follows. Credit all Levi’s Stadium photos and app screenshots: Paul Kapustka, MSR. Credit John Paul photo: VenueNext. Enjoy!)