Deal in Focus: Active leads €3m round for Ticketbis

Active Venture Partners recently led a €3m round for Ticketbis, which was provided in the form of a convertible loan. According to Blair MacLaren, a partner at the Barcelona-based venture capital firm, the deal was structured in this way to grant Ticketbis the option of pursuing a larger funding round later in the year.

The Madrid-based company offers an online platform for the resale of event tickets, focusing on sports and music. Since 2011, the business has expanded from servicing the Spanish secondary ticketing market with one office to operating from around 15 offices and serving 46 countries. In an official statement, Ticketbis said its turnover for the first quarter of 2015 was double that of the same period in 2014 – showcasing the rapid growth strategy currently underway.

Active originally backed Ticketbis in October 2014, leading a €5.2m investment round to fund the business’s expansion into the Asian market. “From our first conversation, the founders gave off a very good impression," says MacLaren. "We liked their vision to become market leader in various countries, where this business model had not been fully developed. Initially, they wanted to continue being financed by friends, family and business angels rather than bringing on a fund-based player such as ourselves. But we kept in touch and built a relationship from there.”

The courtship lasted for around three years, before the initial deal was secured, as MacLaren explains: “We were keen to support them but they were not proactively undertaking an investment round process. Last year, we came to an agreement about what they were looking for and how we could add value. We entered deeper conversations and eventually reached a deal, which we closed at the end of July. It was very much an investment built on relationship and fit.”

The venture capital firm drew capital for the latest round from Amerigo Innvierte Spain Ventures, which held a €54m final close in September 2012. Angel investors Fabrice Grinda and José María also took part, alongside crowdfunding platform AngelList. Ticketbis stated it will use the fresh capital to invest in mobile innovation and improve the overall quality of its service. As with Active’s first investment in the company, the latest round is also earmarked for international expansion, with a particular focus on the Asian market. 

Ticket to ride
With its Spanish roots taking hold, Ticketbis began its international expansion strategy in 2011 by launching in the UK, Brazil, Argentina, Mexico and the main southern European markets. The following year it added Germany and Russia to the list. “In 2014 the company started to test the Asian market, localising the business by opening offices, which is one of its strengths," adds MacLaren. "It now has a presence in Japan, Hong Kong, Singapore and South Korea. With the latest investment, the founders want to grow those existing offices and also invest in other Asian markets.”

Ticketbis is certainly not the first company to offer pre-bought tickets for events on a secondary market. Stubhub, a San Francisco-based business, was founded in 2000 and acquired by eBay for a reported $310m in 2007. The secret of Ticketbis’s growth has been its application of an existing model to underpenetrated markets. “The founders identified this as a successful model in a couple of markets,” says MacLaren, “and specifically targeted other geographies where there was a shortage of secondary ticketing services. As a result the company is market leader in a number of countries, but it is important to note they had to create many of those markets.”

Should Ticketbis complete the aforementioned investment round later this year, it is likely the company’s international growth plans will see it pick up tickets for other uncharted territories.

Advisers
Equity – Uria & Menéndez (Legal).

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• Topics
• Expansion
• Southern Europe
• Consumer
• Deal in focus
• Spain
• Unq2015May