Live in 10 cities, Techstars grad Jukely closes seed round for concert promotion app
Jukely, which graduated from Techstars last year, has closed a seed round worth $500,000, bringing its total funding to $800,000. Investors include David Cohen's Bullet Time Ventures, Larry Marcus of Walden Venture Capital, Hany Nada of GGV Capital, Charles Goldstuck, CEO of TouchTunes, SF Music Tech Fund. Prior investors include angel investors Paul Sethi and David Lerner.
Jukely launched its app in June of last year with the goal of spreading the word about cool upcoming concerts. It quickly expanded beyond New York to ten cities and was featured by Apple. The app had accumulated 12,000 users by November. Jukely pulls a person's listening history from various music apps like Spotify, Rdio, etc, and suggests upcoming shows to attend. It also suggestions people from your social media contacts might be interested in going with you with a feature called "Band Together."
The company has access to seven million peoples' taste in music, co-founder Bora Celik says. (This counts Jukely users, plus all their social media contacts.) "We know where they all live, what they are listening to and we have ways to contact them," he says.
Because of this data, and the ability to match people to potential concerts, Jukely is not primarily focused on the consumer-facing play of selling concert tickets. That functionality is built into the app simply for convenience to users. No, the company now believes its value is in a B2B play for the music industry.
Celik, a former concert promoter, says that promoters spend 20 percent of their event budgets on marketing, which typically goes to Facebook ads, Twitter ads, radio ads, printed fliers and shady email lists with low clickthrough rates. Meanwhile social ads are expensive, radio ads are often irrelevant, and flyers are just outdated. "I even used to buy expensive highway billboards on 1-84 from Lamar for my bigger events," Celik says. "Who knows how well those things work? There is no good way to measure the returns."
So Jukely will be a smarter promotion vehicle for concerts. The company has forged more than 60 partnerships with promoters, venues and artists, including Live Nation, The Bowery Presents, and Webster Hall, to help them find relevant audiences, and more importantly, measurable results on their ad spend. Currently Jukely is not charging those partners to access its data, because it is focused on leveraging these partnership to keep building its audience.
To emphasize its new focus on B2B, Jukely has also launched a virtual currency within the app which allows members to buy and win tickets with points they earn by interacting with the app.
The company has also staffed up, bringing its team to seven people: Jukely hired Colin Gray, formerly of Rubymotion, and Pat Maddox, formerly of RSpec as its lead engineers, as well as Thomas Dunkley, a booker who founded promotions company GBH.