Vivid Seats is an online marketplace for buying and selling tickets to live events such as concerts, sports games, and theater shows. The company provides a platform that connects ticket buyers and sellers in the secondary ticket market. Vivid Seats allows users to browse upcoming events in their area, compare ticket prices and seating options, and securely purchase event tickets.
As an online ticket resale marketplace, Vivid Seats does not own or operate any venues. Rather, it partners with a large network of ticket suppliers including season ticket holders, ticket brokers, and more to provide inventory to buyers. This allows Vivid Seats to offer tickets to millions of events across North America.
So who owns and operates the Vivid Seats platform? Let’s take a look at the corporate structure and history behind one of the largest secondary ticket marketplaces.
History of Vivid Seats
Vivid Seats was founded in 2001 by Jerry Bednyak. Based in Chicago, Illinois, the company sought to leverage the internet and e-commerce to create a marketplace connecting ticket buyers and sellers for in-demand live events.
In its early years, Vivid Seats focused on listing tickets for resale to major sporting events, concerts, and theater shows in the Chicago area. It gradually expanded its inventory and buyer base across the United States.
Key milestones in Vivid Seats’ history:
- 2001 – Founded by Jerry Bednyak in Chicago, IL
- 2005 – Expanded nationally in the US
- 2012 – Processed over $75 million in ticket sales
- 2015 – Sold majority stake to private equity firm GTCR
- 2016 – Acquired secondary ticket marketplace RazorGator
- 2017 – Expanded to Canada
- 2018 – Processed over $2 billion in ticket sales
In 2015, Vivid Seats received a major investment from the private equity firm GTCR. This allowed the company to accelerate its growth through strategic acquisitions. A key purchase came in 2016 when Vivid Seats acquired RazorGator, another secondary ticket marketplace.
Today, Vivid Seats has become one of the largest online ticket resale marketplaces. It provides a platform for buyers and sellers to trade tickets to over 125,000 live events each year.
Corporate Structure and Ownership
So who owns Vivid Seats today? Here is an overview of the company’s current corporate structure and ownership:
Parent Company
The parent company of Vivid Seats is Vivid Seats LLC. This is the main legal entity that was founded in 2001 and maintains ownership of the VividSeats.com online marketplace.
Vivid Seats LLC is based in Chicago and oversees all of the company’s operations including technology, marketing, finance, and more.
Majority Shareholder
Today, the majority owner of Vivid Seats is the private equity firm GTCR.
GTCR first invested in Vivid Seats in 2015, acquiring a majority stake estimated between 51-75%. The founders and management team retained a minority stake.
GTCR is a leading private equity firm based in Chicago, founded in 1980. It has invested over $18 billion of capital in hundreds of companies across numerous industries. Other GTCR investments include companies like AutoTrader, SiriusXM, and TouchTunes.
By acquiring a majority stake in Vivid Seats, GTCR provided growth capital and strategic resources to help propel the company’s expansion. However, Vivid Seats continues to operate as an independent entity with its own management team.
Minority Shareholders
In addition to majority owner GTCR, there are also minority shareholders in Vivid Seats LLC:
- Founder and CEO Jerry Bednyak
- Other members of the executive management team
- Institutional investors
- Individual investors
While GTCR holds a majority stake, the minority stakeholders collectively own an estimated 25-49% share of the company.
Board of Directors
Overseeing the management and strategic direction of Vivid Seats is its board of directors. This includes:
- Jerry Bednyak – Founder and CEO
- Stan Chia – Managing Director, GTCR
- Craig Dixon – Managing Director, GTCR
- Chris Norton – Principal, GTCR
As the majority shareholder, GTCR has appointed directors to provide guidance and governance. However, founder Jerry Bednyak continues to serve as CEO and chairman of the board.
Business Operations
Although owned by multiple shareholders, Vivid Seats operates its online ticket marketplace as a centralized business entity.
All technology development, inventory acquisition, marketing, sales, and customer service for VividSeats.com are handled within the main Vivid Seats LLC.
Key functions include:
Technology
Vivid Seats employs in-house engineers, developers, and technologists to build and maintain its e-commerce platform and mobile apps. The technology team handles:
- Website and app development
- Data and analytics systems
- Cybersecurity
- Infrastructure management
Inventory and Supply
To source event ticket inventory, Vivid Seats has partnerships with a large network of ticket suppliers:
- Season ticket holders
- Ticket brokers
- Venues
- Fan clubs
- Other ticket resellers
Ticket sources can list their available tickets for sale on the Vivid Seats exchange. The supply team oversees these partnerships.
Marketing
Vivid Seats has in-house marketing teams responsible for areas like:
- Advertising and promotional campaigns
- Partnerships (sponsors, affiliates, etc)
- Public relations
- Social media and digital marketing
These efforts aim to drive brand awareness and ticket sales.
Sales and Service
The company employs sales representatives and customer service agents. These teams handle:
- Assisting ticket buyers with purchases
- Supporting ticket sellers
- Fielding customer inquiries and issues
Finance, Accounting, Legal
Like any company, Vivid Seats has dedicated finance, accounting, legal, human resources, and administrative teams to handle back-office business functions.
Financial Performance
As a privately held company, Vivid Seats does not disclose detailed financial results publicly. However, some key financial metrics and growth trends include:
Revenue
FY 2018 Revenue | $765 million |
FY 2019 Revenue | $1.1 billion (est) |
Vivid Seats has achieved rapid growth in gross sales (value of tickets sold), likely exceeding $1 billion in 2019. Its net revenue cut likely exceeds $500 million.
Gross Sales Volume
2012 | $75 million |
2015 | $376 million |
2018 | $2+ billion |
Gross sales (ticket volume) has increased over 30x from 2012 to 2018.
Profitability
The company is believed to be profitable and cash flow positive. VividSeats has used its profits to reinvest in growth.
Funding
2015 | GTCR majority investment | $225 million |
Vivid Seats received a large infusion of growth capital from GTCR in 2015.
Future Outlook
Vivid Seats appears well-positioned for continued growth in the ticket resale industry.
Factors driving future growth potential:
- Ongoing consumer shift to online ticket buying
- Fan demand for unique live event experiences
- Technology improvements enhancing marketplace convenience
- Expanded ticket inventory sources
- Advertising scale advantages vs. smaller competitors
Vivid Seats also has ample financial resources and industry expertise from its investors like GTCR to support expansion.
The company could pursue growth opportunities such as:
- New geographic expansion
- Adding new sports and entertainment inventory
- Acquiring competitor secondary ticket marketplaces
- Enhancing mobile capabilities
- Improving data and analytics on ticket demand
Conclusion
Vivid Seats has grown from a startup to one of the largest players in the secondary event ticket marketplace. Backed by private equity investor GTCR, the company has rapidly expanded its inventory, technology platform, and brand reach. While no longer founder-owned, Vivid Seats continues operating as an independent entity committed to serving its buyers and sellers. With ample room for continued growth domestically and abroad, the company looks poised for an exciting future empowering fans’ access to live event tickets.