Funding to Support International Expansion and Tech Innovations
CHICAGO – Reverb.com – the marketplace for musicians to buy and sell the gear they need to make music – today announced the completion of a $25 million Series B funding round led by global growth equity investor Summit Partners. Launched in 2013, Reverb is closing out its second full year in business and is on pace to process more than $120 million in transactions in 2015. The company’s earlier investors include Lean Startup pioneer Eric Ries, Rick Nielsen of Cheap Trick, and country music superstar Brad Paisley.
Comprised of a robust website and two mobile apps (iOS and Android), Reverb gives users the power to easily create product listings, browse new and used gear, and compare an unrivalled set of historical pricing and sales data. Reverb also serves as a platform for education and musical exploration, hosting a wealth of content that includes product reviews, demo videos, gear histories, and artist interviews. The new investment will support the company’s international expansion strategy, key branding initiatives and continued technical innovation.
“The market for new and used musical instruments is enormous – over $23 billion globally,” said founder and CEO David Kalt. “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 an innovative leader in the market.”
Kalt is also the owner of the Chicago Music Exchange, one of the world’s largest and best-known vintage guitar dealers. He founded Reverb in late 2012 in response to his frustrations with buying and selling used gear online, and he launched the Reverb marketplace in 2013.
“At Summit, we look for experienced founders and companies with clear business models making a measurable market impact,” said Summit Partners Principal, Andrew Collins, who will join the company’s Board of Directors. “Reverb checks all of those boxes. We believe that its value to musicians, dealers and collectors is clear and proven; its customers are raving fans; and, as the sole institutional investor in David’s prior company, optionsXpress, we could not be more confident in Reverb’s leadership. We are thrilled to be their partner for this next phase of growth.”
Reverb is changing the way musicians buy, sell, value and learn to play musical instruments.
Founded in 1984, Summit Partners is a growth equity firm that is currently investing more than $6.5 billion into equity and fixed income opportunities. Summit has invested in more than 400 companies in technology, healthcare and other growth sectors. These companies have completed more than 135 public offerings, and more than 150 have been acquired through strategic mergers and sales. Notable consumer-oriented technology and e-commerce companies financed by Summit Partners include Answers, Avast Software, Belkin, Global Fashion Group, optionsXpress, Uber, Tiny Prints, vente-privee.com, Wildfire Interactive, WebEx and Web Reservations International. Summit maintains offices in North America and Europe and invests in companies around the world. For more information, visit www.summitpartners.com or follow on Twitter at @SummitPartners.
In the United States of America, Summit Partners operates as an SEC-registered investment advisor. In the United Kingdom, this document is issued by Summit Partners LLP, a firm authorized and regulated by the Financial Conduct Authority. Summit Partners LLP is a limited liability partnership registered in England and Wales with registered number OC388179 and its registered office is at 20–22 Bedford Row, London, WC1R 4JS, UK. This document is intended solely to provide information regarding Summit Partners’ potential financing capabilities for prospective portfolio companies.