Investors Pump $1.75 million Into Bypass Lane’s Mobile “Beer-Me” Application

After landing the University of Texas Longhorns, Stanford Cardinal and Philadelphia Eagles in August, Bypass Lane is attempting to establish itself as the leading developer of mobile electronic commerce applications used at live sporting events.

The Austin-based company announced today that it has raised $1.75 million in new venture capital with funds earmarked primarily for building a sales organization. Investors include former Minnesota Vikings owner Red McCombs, Wasserman Media Group chairman and CEO Casey Wasserman and business managers for bicyclist Lance Armstrong. The nine-person company selected the investors on the basis of their connections to the sporting world, and expects to be able to draw upon their expertise to better penetrate the live sporting market.

The Bypass Lane App

Available through App Store, Android Market and BlackBerry App World, Bypass Lane allows consumers to download its application during a live sporting event, store payment information, and order food, drinks and merchandise that is either delivered to their seat, or provided through a special window at the concession stand. There is no surcharge for the service. Teams license the Bypass Lane platform, and pay the company on a per-transaction basis.Fans typically spend 35 percent to 50 percent more using a Bypass Lane application than they do while waiting in line, which is one of the primary benefits sports teams get from a Bypass Lane license.

The concession market at live events are between $8 billion to $10 billion in the United States, according to Reuters.

Company president’s quote: Boom Goes the Dynamite!

In an interview with MobileSportsReport, Bypass Lane president Lloyd was on the money in explaining his company’s value proposition:

“It is a foregone conclusion in the industry that sports fans are going to use their mobile devices in the live-event venue, but how to monetize that is something all sports teams are wrestling with,” said Lloyd. “We offer something that allows teams to generate a return on investment in their first year. (Sports teams) can increase their average transaction size, capture sales that are lost to line deterrence, and a last-call feature allows teams to move excess inventory.”

Bypass Takes No Shortcuts to Momentum

Debuting in 2010, Bypass Lane found it slow going at the outset, but is beginning to establish itself as a category leader. Bypass Lane broke through during the 2011-2012 college football and National Football League season with the addition of the Longhorns, Cardinal and Eagles concessions. Other clients include the Texas Rangers, Carolina Hurricanes, Phoenix Coyotes and Minnesota Wild. To date, Bypass Lane is available in about 40 U.S. venues, and it should come as no surprise that Mark Cuban, one of the industry’s most tech-savvy owners, has it through a Bypass Lane agreement with American Airlines Center, home of the Dallas Mavericks and Dallas Stars.

“We spent 2010 solidifying fulfillment, and in 2011 we’ve been adding over two venues a month,” said Lloyd. “We expect to continue that pace for the foreseeable future.”

The other Lloyd: Not an NFL Wideout

Bypass Lane’s Lloyd has experience create start-ups. He launched Off-Campus Solutions in 2002, and sold the company to offshore investors a few years later. Lloyd is not the NFL wide receiver of the same name.

Comments

  1. Great idea — eliminates the biggest time delay, the person in line who doesn’t know what to order. Or the slow concession worker who didn’t hear the order. And if they get Lance to deliver the drinks, it will be extremely fast.

    • This is an impressive start up, Paul. Some of the stats on “line deterrence” are pretty amazing, and if any app develop can cut down on line deterrence they are adding value. I for one know that I’ve just thrown up my hands and gone back to my seat after seeing too long a line.

      Expect some sponsorship announcements from these guys pretty soon. The data that can be collected through the app is valuable, and sponsors are going to want to know who is spending money at that particular game.

      Finally, there’s a link to one of two jobs that Bypass Lane is looking to fill under sales organization, and in speaking with Lloyd he is really serious about finding the right people for both of those gigs. Hopefully one or more of our readers will climb aboard, and then help these guys build a mobile sports application that rocks.

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