Groupmatics is growing rapidly, though founder Matt Mastrangelo admits a 540% year-over-year revenue jump from 2014 to 2015 is easier to achieve when a company is only a few years removed from its launch.
But the Westlake software company, which helps sports teams and entertainment venues manage group ticket sales, is developing quite a roster of clients.
Groupmatics closed 2014 with 15 major- and minor-league teams using its software, which allows teams and venues to create a link that a group leader can distribute to anyone interested in purchasing a ticket. (That way, a youth group or a Little League baseball team doesn’t have to collect all of the money for an outing. The team, via Groupmatics, does that for them.)
By the end of 2015, Groupmatics was up to 41 teams, and Mastrangelo says the company he founded in 2012 is now approaching 50. Groupmatics works with five NBA teams, including the Golden State Warriors, and five MLB clubs, including the Boston Red Sox, Washington Nationals and Detroit Tigers. The company has also added three NHL teams, including the Columbus Blue Jackets, along with the Columbus Crew and two other MLS clubs.
Mastrangelo said Groupmatics started working with the Warriors during the 2015 NBA Finals. The company’s selling point, oddly enough, was its ability to ease the burden that sometimes results from teams giving away tickets to a future game during summer camps they host each year.
“There’s a real big issue across the industry with including a free ticket maybe in a kids registration of some sort,” Mastrangelo said. “And they were facing challenges in being able to take those orders and sales online while also allowing parents and families to purchase additional seats and keep everyone together (at the game).
“So we actually worked in conjunction and built out this new redemption code feature with the Warriors specifically, but we knew that this was an issue across the industry and building out this brand new feature would open up doors to other teams.”
And that, Mastrangelo said, “is exactly what’s happened so far.”
Groupmatics became an approved vendor for MLB Advanced Media, the powerful digital arm of Major League Baseball, prior to the 2015 season. The company got a late start — Mastrangelo said Groupmatics’ software “wasn’t up and running” with most of the company’s MLB clients until the start of last season. When it comes to group sales, that means you’re at least a couple months late.
“Most groups have to finalize their numbers two to three weeks out from the game, so they start selling in advance and we missed out on a lot of that,” said Mastrangelo, who previously worked in group ticket sales for the Indians and Browns. “But overall it went really well. I think that’s why you see the Padres and the Nationals coming on board (for 2016).”
Mastrangelo’s company has raised $700,000 in two financing rounds — $300,000 in May 2014 and $400,000 last September. According to Groupmatics’ CrunchBase bio, Zapis Capital was a heavy investor on both occasions, and the Innovation Fund of Northeast Ohio kicked in $100,000 last September.