Music Marketplace ‘Reverb’ Raise $25 Million For Global Expansion
Reverb have raised $25 million to fund the global expansion of their online marketplace for musicians.
Reverb, a website created by its Chief Executive David Kalt, is a platform through which users can buy and sell used instruments, much like eBay but entirely for musical equipment. In a second round of financing for ‘Reverb Holdings Inc.’ the startup raised $25 million with which Kalt hopes will push Reverb beyond its startup status, saying that he is “building a business”.
Summit Partners, a Boston-based growth equity investment firm, led the Series B funding. Since launching in 2013, Reverb has received funding from Lean Startup founder Eric Ries, Cheap Trick’s Rick Nielsen and country musician Brad Paisley.
Reverb founder, David Kalt said: “The market for new and used musical instruments is enormous – over $23 billion globally. Reverb brings new life to old musical instruments by putting them side by side with new gear while giving musicians a convenient experience with price transparency and engaging content that stokes their passion for music. With Summit’s support, we are focused on further establishing our position as the innovative leader in the market.”
Kalt is going to use the new funding in Reverb to expand internationally focussing on markets like Europe and Japan. On their expansion Kalt said: “We’re looking at acquisitions similar to our lessons business. It could be other musician-related portals. It could be booking gigs, it could be event related.”
Reverb began expanding beyond its buy & sell roots this year by launching Reverb Lessons. With Reverb Lessons you can find experienced and trained instructors in a variety of instruments that you can have a lesson from online, at the instructors place, or at your home, for a fee.
Kalt set the business up after running a guitar shop in Chicago and after buying and selling used equipment on eBay and finding the experience unsatisfactory. Using previous experience of working online Kalt set up Reverb to enter the $7 billion a year industry of used instruments and equipment.
Reverb has something to offer for everyone from $1 guitar tuners to vintage equipment and instruments used by famous musicians. For example Lynyrd Skynyrd guitarist Ed King’s old guitar was sold on there as well as Grateful Dead guitarist Jerry Garcia’s fuzz pedal.