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SaaS Interviews with CEOs, Startups, Founders

Events.com Should Have Been Hopin, Can They Acquire Their Way Back To Top?

11 Mar 2021

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 19.702 Mitch Thrower

So, combined entities were, for 2019, about $16.8 billion. And then, if you look at 2020, pre-COVID, both contracted and otherwise recurring revenues should have been in the $25 million range.

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Chapter 2: What challenges did the event industry face during COVID-19?

20.043 - 27.034 Mitch Thrower

But obviously, COVID was just a crushing blow to the event industry. There's a $3 billion drop out of the event management software business.

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28.853 - 48.993 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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49.794 - 60.773 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public.

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Chapter 3: How did Events.com evolve from its inception?

60.793 - 65.121 Unknown

We've got to grow faster. Minimum is 100% over the past several years.

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65.236 - 75.851 Nathan Latka

Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Behan before Google acquired his company for $2.6 billion.

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76.853 - 80.879 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

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81.64 - 108.349 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked. Hello everyone.

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108.369 - 127.157 Nathan Latka

My guest today is Mitch Thrower. He's co-founder and CEO of events.com. Also co-founder of active.com and former chairman and owner of triathlete magazine. He was a tech producer, chairman of Loyola foundation and co-founder of active.com, the active network. Prior to that, he was co-founder and CEO of Active Europe.

127.197 - 135.75 Nathan Latka

Active went public before selling to Vista for $1.05 billion and then eventually sold several divisions like Global Payments for $1.2 billion.

Chapter 4: What strategies did Events.com use for growth post-COVID?

136.051 - 155.751 Nathan Latka

He also is a 22X Ironman triathlete. Mitch, I'm going to try and keep up here. Are you ready to take us to the top? I'm ready. I'm just older. Fair enough. Look, the event space has seen some change over the past 12 to 24 months. Let's go pre-COVID for a second. What was events.com pre-COVID? Software or something else?

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Chapter 5: What role do acquisitions play in Events.com's strategy?

156.552 - 177.952 Mitch Thrower

Yeah, software and services. Primarily software for event organizers to make more money and save time by bringing the disparate point systems that event organizers are faced with today onto one platform. And help me understand the backstory there. When did you launch that business? So interestingly enough, we launched an incubator where we had several different projects going on.

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177.992 - 198.484 Mitch Thrower

One of your philosophies, don't work on one thing, right? Figure out which one's going to work. You've read the book, huh? Yeah. Well, actually, I think it was an interview, so I confess I haven't yet read the book. But I will. And I think ultimately, we dabbled in the civic space. We bought a company called Civico, which we sold to Granicus. We then sold to Vista.

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198.464 - 220.094 Mitch Thrower

Then we looked at the connected car, and then we were really looking at getting back into the event industry. This sort of emerged in that process. We started Code in the end of 2015-2016 as one of the projects in the incubator. It really became kind of a core focus. to really pour our code and launch and build an enterprise platform for events really around 17, 18. Okay.

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220.795 - 229.872 Nathan Latka

And so, well, just to be clear. So what was like, I mean, I know you did around like a series B, like for a million and 2.3 million back in like 2012 timeframe, what was going on back then?

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230.425 - 239.515 Mitch Thrower

Yeah. So those are the acquisitions. So that was when we acquired a company in the civic space. That was all, even though the entity is events.com, that was the kind of in and out of the incubator.

240.056 - 241.377 Nathan Latka

I see. I see. Okay. Got it.

Chapter 6: How does Events.com integrate with other video tech platforms?

241.417 - 247.884 Nathan Latka

So when you say this was structured as an incubator, was this just you financing this sort of incubation with your own personal capital or was it something else?

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248.305 - 272.113 Mitch Thrower

Yeah, it was myself, a gentleman named Steven Partridge and some people that we'd worked with before taking a look at different ventures that could catch fire and really have an enormous opportunity to scale, build something big, and the events.com domain name is one that we acquired from CBS, believe it or not. It was originally owned by Bill Gross, not PIMCO Bill Gross, but Idealab Bill Gross.

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272.293 - 282.486 Mitch Thrower

Oh, wow. What year was that? Oh, goodness. I don't know the exact year, but that I can, I can find out. It probably was 13, 14.

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282.586 - 301.483 Nathan Latka

So you were sitting on the, in the venture studio model, you've got the domain, you were sitting on it. Then you started writing code for events.com in 2015. Correct. I see. Okay. So, so this, I mean, is, is that what it was? It was basically a venture studio model. You guys were hunting for the next big thing to build. We didn't call it at that point, but yes, that was exactly it.

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301.683 - 305.607 Mitch Thrower

That's exactly it. It's really what, which of these will catch fire and where can we really

Chapter 7: What lessons were learned from the pandemic's impact on events?

306.076 - 310.141 Mitch Thrower

develop a working thesis that will be scalable. Okay.

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310.221 - 315.788 Nathan Latka

So what signals were you seeing in 2015 that gave you the confidence to say, you know what, let's go all in on events.com?

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315.808 - 331.628 Mitch Thrower

You know, the event industry has transformed not just in the last year, but prior to that, as technologies emerged for the event industry, event organizers were faced. You know, if there was like the Nathan Festival, you would be using up to 15 different platforms. You'd have one for ticketing,

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331.996 - 345.153 Mitch Thrower

one for marketing, one for analytics, and you've got some person in the corner with a spreadsheet trying to sell sponsorship, but they get recruited away because they're good with people. All of these different things that were happening was pulling value away from event organizers.

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346.254 - 359.05 Mitch Thrower

We operate primarily in the mid-tier, although we have a wonderful festival with 56,000 attendees and the Rise Festival. We have big clients, but our focus is really the mid-markets.

359.452 - 374.305 Mitch Thrower

And so we looked at these event organizers and said, there's just a better way, an absolutely better way for them to get access to something that helps them make more money and save time because it's just a nightmare. None of the systems they were using were talking to each other.

374.345 - 390.716 Mitch Thrower

So the app that they hired someone to build for check-in didn't match with their registration app, which didn't match with their analytics app, which they had trouble doing their email marketing to. So kind of bringing that centralized hub together, that was the problem that emerged. That was kind of the pain point that we really wanted to address.

390.756 - 408.116 Mitch Thrower

And it's actually, it's gotten worse with more event-related businesses popping up all the time, even with the virtual, you know, and the hybrid things that we're seeing coming out now. So I think we're in a really good space to, you know, focus on, you know, a single platform for events to manage what they're dealing with.

408.396 - 413.061 Nathan Latka

So what were you able to grow to that first 12 months? 2015 total revenue came out to what?

Chapter 8: How does Events.com cater to mid-market event organizers?

413.081 - 413.462 Nathan Latka

Do you remember?

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414.543 - 428.804 Mitch Thrower

Okay, let me see. 2015 total revenue, and I'll share two contextually. The 2015 total revenue is going to be blurred because we've also just gone out and done some acquisitions. Some companies that have been around for 10 years plus, some companies for four years plus.

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429.345 - 449.145 Mitch Thrower

So when I talk in numbers, I just want to contextualize that there's kind of the pre-acquisition and then there's the companies and they're trailing historical actuals. Ignore the trailing stuff. Yeah, yeah, yeah. Yeah. So, I mean, in the first 12, we were probably in the maybe million and a half range, somewhere in there, a million four. The great thing is we were in

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449.378 - 468.771 Mitch Thrower

I would call it a beta, although we didn't necessarily call it a beta. But when you're building a platform for events where they're trusting you with their capital, I mean, many event organizers log in more to our systems than they do their online banks because they're watching their transactions, they're communicating with their customers, they're utilizing it for a part of their CRM.

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469.291 - 488.407 Mitch Thrower

And when that happens, you really want to have a great place for people to live. So our scale, our buttons on scale and organic growth and marketing, we have not yet really pushed those because we wanted to get to where we were about a year ago when we were ready to really push it out to market. And then, of course, the pandemic happened.

488.447 - 505.76 Mitch Thrower

And so we said, let's go do some acquisitions to scale during a pandemic. But that's what we started on and taking one or two of the systems that people were using, bringing it onto one and then adding fourth and fifth and sixth and 12, however many different features that they're using elsewhere under one platform.

506.161 - 517.152 Nathan Latka

And so with that 1.5 million in sort of year one history, right? Just again, ignoring the acquisitions you've done now and they're trailing revenue. You also went out, I think, raised a round of capital that year. How much did you raise in 2015?

517.655 - 530.618 Mitch Thrower

Correct. So I think collectively, and we did it as a rolling raise. So I'm going to let you know, we've raised over $50 million and we're about to announce a round that takes us over $70 million. And that includes the acquisitions

531.053 - 545.275 Mitch Thrower

Um, uh, one of which we did in 19 and didn't announce one of which actually the other three, which we're about to announce, I would say within the next two or three quarters. Um, and so that's, that's an exciting time, but it's, uh, it's about 70 million cumulatively.

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