You guys seem to have some pretty big players on board so far. Have any of the major venues/groups not been receptive to your app? Do you see yourselves winning them over in the future? Also love the shirt!

Hi Clive, in the beginning it took some persuasion to get the big players on the app. The team actually moved to Las Vegas for 8 months during this on-boarding process. Today, we are working with the biggest players in the country (our partners include 7 of the top 10 biggest nightlife venues in the country by revenue). Partnering with Discotech is essentially 0 risk to the club because we only get paid when we deliver traffic to their business. For this reason, we have had a very good succes...

Tablelist has acquired NightPro. How does this acquisition affect the dynamics of how DiscoTech will operate in the future?

Hi Michael, NightPro is a back-end system with pretty minimal market on the East Coast (Miami in particular). They recently lost their biggest client base (LIV, Story) to another back end provider called Seven Rooms which I think was a reason for their sale. NightPro is not used by any of our major partners and thus has no material impact on our operations. The biggest player in the nightlife back-end space is UrVenue, which is a company that we are integrated with and have good relations with.

In regards to the 1k backing perk, is the VIP concierge service a lifetime thing? If so, what does that entail? Could you elaborate a bit more? thanks ;)

Hi Carlos, you will receive a private customer support line, and it will be a lifetime thing. We will know that anyone who calls this number is an investor in Discotech, and we can prioritize certain benefits such as ticket giveaways to our investors / best customers here.

How much salary do you intend to pay yourself? How much do you need to raise to accomplish the goals listed on the 1 year roadmap or to raise next round of financing?

Hi Tony, we plan to use these funds to pay each founder a $60K a year salary, and software developer talent will be $100K a year. Ideally, this will be our last round of fund raising. Seeing as we have already raised ~$200K offline in this round, we are looking to raise an additional $300K at this time from WeFunder + large outside angels.

What's the ultimate endgame your company is shooting for?

Hi Jonathan, our ultimate goal is to sell the company to a strategic buyer. We see 3 channels as being the most likely acquirers: 1. Existing reservation platforms (Priceline, Expedia) - They have been extremely active in M&A and have lots of cash. They historically have rolled up companies that expand their umbrella of reservation services, and they don't currently do any nightlife. 2. Existing Ticketing Platforms (Livenation Ticketmaster, Eventbrite, Cvent) 3. Large Nightlife Platform (...

Discotech

OpenTable for the $27 billion U.S. nightlife market

app.discotech.me

Los Angeles, CA

Technology B2B SaaS

Highlights

1000+ nightlife venues in over 50 cities. Our partners include the largest clubs, concert venues, and music festivals in the country.

Over $7M in gross revenue with ~$875K in gross profit in 2019

~60% YoY revenue growth in Q4'19

4.9/5 stars on iPhone and Android app stores. Over 410K registered users.

Team

The Nightlife Market is a Mess

The 65,000+ nightlife venues in the U.S. depend on club promoters: middlemen who take their cut of the pie and operate primarily through word-of-mouth. These 100,000+ individual promoters are highly fragmented, difficult to manage, unreliable, and difficult to scale.

Promoters Don't Work

They are independent, take large commissions, and can only promote up to a handful of clubs at a time. Pricing is opaque and inconsistent. Most importantly, it is difficult for customers with no pre-existing contacts to get access to these promoters.

So, We Built the OpenTable for Nightlife

Discotech is highly scalable, with already 1,000+ nightlife venues (clubs, lounges, bars, concert venues, music festivals, pool parties) available in one platform. Pricing is transparent and predictable. Our venue partners can track customer count and prepare appropriately.

How it Works

Discover Events

All available club events in one list

See where your favorite DJs are spinning

Check out where your friends are going

Filter by music type, bottle price, free guest list, etc.

Book Immediately

Buy tickets directly on your phone; no printing required. Get access to discounted promos

Reserve VIP tables instantly

Our Customers Love Us

Discotech has a 4.9/5 star review on both iOS and Android app stores, with over 6,000 combined reviews.

The Largest Network of Nightlife Venues

We have successfully partnered with the best clubs and nightlife venues in the U.S. We have over 1,000 venues running their inventory on our platform, and are present in over 50 cities. We have the largest collection of nightlife specific merchants in our industry.

Proven Revenue Model

Discotech has been generating revenue since our iOS launched in 2014. We currently monetize the three different channels of admission on our platform - VIP Table Sales, Ticket Sales, and Guest List Commission. Our revenue has grown steadily year over year with little advertising spend. We finished 2019 with ~$7M in gross revenue, and ~$875K in net revenue. (Our gross profit is roughly $850K)

While our business does have seasonality, our summers are busier and our winters are slower, our company has demonstrated consistent growth each year.

User Adoption is Accelerating

We are adding more new users each year. It took our company roughly 5 years to get to 300,000 users. It then took less than 9 months to go from 300,000 to 400,000. The vast majority of our growth is organic. Because our customers love our product and service, the more users we have the faster that we grow via word of mouth.

Party Like a Pro

The nightlife space has long been plagued by inefficiency and non-transparency. As avid nightlife customers, the team here at Discotech has firsthand experience challenges of working with promoters and going out to hit the town. These negative experiences made us realize that there was an opportunity for technology to streamline the going out process.

Over the last 6 years, we have demonstrated that our business model works. We are now looking to take our company to the next level. This round of funding will go towards scaling our user-base and revenue, as well as developing innovative product features.

Going out with your friends is fun, but planning a night out is anything but. At Discotech, we believe that the nightlife industry is overdue for disruption and that we are part of the solution. We invite you to join us now as an investor and help up make nightlife better for everyone.

Much love,

Ian, Mark, and Ian

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