UK-based, small-scale gig promoter Sofar Sounds secured $25m from investors including diversified conglomerate Virgin Group yesterday.
Technology investment firm Battery Ventures led the round, which also featured venture capital firms Union Square Ventures and Octopus Ventures.
Founded in 2009, Sofar promotes intimate, small-scale gigs held in locations such as a shop or a person’s home. The gigs feature three performers each, and users apply to buy tickets for a flat fee through the company’s platform, bringing along their own refreshments.
The company is present in more than 400 cities worldwide. Although it says it is not profitable, controversy has arisen due to its business model, which does not compensate event hosts and which pays performers a flat fee of roughly $100, though it does occasionally offer them a video of the show.
The funding will be allocated to expanding Sofar’s online community and offering more services to performers.
Sofar identified Virgin and Octopus Ventures as existing backers but has not disclosed details of any past funding. Its investors also include VC firms LocalGlobe and Index Ventures.
