Dice Secures $65M for its event discovery and ticketing platform
Amidst the aftermath of the COVID-19 pandemic, physical events have made a comeback, and a London-based startup specializing in event technology is taking advantage of this trend. Dice, a platform that helps users discover and purchase event tickets, has secured $65 million in funding to expand its services throughout the United States and Europe. Over the past year, Dice has provided services to millions of fans, 55,000 artists, and over 10,000 venues, festivals, and promoters across 30 cities in these regions, generating revenue through fees charged to event organizers.
According to Dice’s CEO and co-founder Phil Hutcheon, the company’s investment and growth goals are focused on live events rather than live streaming. While the latter was a priority during the pandemic, it has since been phased out.
According to a statement made by Hutcheon, live events still reign supreme despite the popularity of live streaming during the pandemic. Although the acquisition of Boiler Room, the foremost electronic music broadcaster globally, has been a massive success, it’s mainly due to its ability to produce in-person events. Except for festivals, which remain uncertain, live events have experienced constant growth.
Dice’s services encompass discovery and ticketing for various live events, including comedy and drag cabaret. However, music has been its primary focus. To that end, MUSIC (written in all caps), a venture capital firm led by musician and music executive Matt Pincus, is spearheading the funding round.
Ahdritz Holding LLC, led by founder and chairman Willard Ahdritz, raised funds in a round that included previous backers Exor Ventures and Mirabaud Lifestyle Fund and new participant Structural Capital.
According to Phil Hutcheon, the spokesperson for the company, notable figures such as SoftBank, Tony Fadell, Xavier Niel, and the co-founders of DeepMind have shown their support for DICE. He further stated that all these individuals remain supportive of the company, hold onto their shares, and stay in regular contact with him.
Hutcheon’s company’s current value remains undisclosed, but it has been confirmed to have surpassed its $400 million valuation in the previous year, 2021. During the startup’s last funding round, they received an infusion of $122 million, which was the valuation at the time.
According to him, DICE operates unconventionally. Despite pandemic-related concert cancellations, DICE has seen monthly growth since the summer of 2021, with each month surpassing the last. The company’s valuation has also increased since the previous funding round.
The CEO of Dice did not reveal the exact amount of funding raised, but according to PitchBook data, it is estimated to be just shy of $200 million. The recent round of funding totaled $65 million, with the majority being equity and some debt. The company did not provide a breakdown of the funding.
For many years, discovery has been critical in e-commerce, social media, and other platforms. Users must navigate the vast amount of content and make informed choices. One of the significant dilemmas in the discovery process is whether to build algorithms around a platform’s data or to take cues from other platforms to inform the process.
In previous conversations, Hutcheon informed me they had created their datasets entirely from scratch. They should have relied on social platforms like Facebook to learn about users’ preferences. This approach took them a long time to develop and launch their platform, but they remain committed to it for the most part.
According to him, their recommendations are mostly based on their dataset. While they use Spotify and Apple Music scanning to get a headstart, the correlation between one’s listening and live attendance data is stronger than people may assume. For instance, someone who listens to techno music all day may prefer watching a band perform live, or vice versa.
He says almost half of all Dice ticket sales are generated through personalized recommendations. Hutcheon revealed it took them longer to make the Discovery Algorithms effective since they didn’t use those other data sources, but the investment paid off. The company is delighted with the path they took.
While many startups and investors focus on AI, Hutcheon declined to comment on whether Dice will eventually incorporate generative AI into its platform. While a conversation might lead to more interaction between potential customers and converting them into ticket buyers, that’s something other than what Dice is currently building or discussing.
Instead, Dice’s AI focuses on how it can be used for its business customers, such as venues, producers, and musicians, who want to connect with fans.
The data we gather from fan recommendations helps discover new events and provides us with excellent forecasting tools,” stated Dice’s representative. The company is currently developing tools for artists, venues, and promoters to leverage this data in the coming year.
Consolidation has been the trend in the events and ticketing market, with more prominent players acquiring innovative startups that bring in new audiences or offer something unique. These dominant platforms are notorious for charging additional fees that add to the already expensive ticket prices, leading to consumer discontent. In this market, smaller players and consumers are at a disadvantage due to unfavorable economics, creating a gap that needs to be addressed, according to Pincus.
According to Pincus, most ticketing companies are intermediaries between venue ticket sellers and buyers. However, DICE is different as it is a user platform that caters to ticket buyers. The platform focuses on the fans who attend clubs and festivals worldwide, driven by their love for music. In today’s world, where traditional forms of audience engagement, such as radio, conventional media, and DSP algorithms, are no longer sufficient, the fans who go to shows are the most critical consumers of music. The more time passes, the more fans are drawn to DICE, making it an essential gateway for music lovers. DICE’s position as a leading ticket business with a solid connection to fans allows them to expand their services in ways others cannot. Pincus, who happens to be the son of Warburg Pincus’s co-founder, will join the board in this round.
Dice has always believed in keeping its users happy, reflected in their motto, “Happy Fan, Happy Dice.” The company has established trust with its customers, who rely on it to find exciting events to attend. Fans have made it a habit to use Dice to purchase tickets, much like how they turn to music streaming services to listen to their favorite tunes. These habits are hard to break, especially since music appeals to the ears.