In what could be a sign of things to come for secondary ticket companies in light of the current recession, RazorGator has reached out to venture capitalists and raised $7.5 million in financing.
The company did not release details of its latest round of financing, but according to RazorGator spokesperson Scott Roback, the company expects to release information on matter sometime next week after the deal closes. According to the private equity Web site PEHub.com, Steamboat Ventures, an affiliate of the Walt Disney Company, has placed one of its managing directors, Dan Beldy, on RazorGator’s Board of Directors.
RazorGator is the nation’s sixth-largest secondary ticket company, according to TicketNews’s exclusive industry rankings, and the company has said in the past that it raised about $26 million from venture capital firms Kleiner Perkins Caufield & Byers and Oak Investment Partners. The company is perhaps best known for its sports-related ticket and travel packages, particularly involving the NCAA Men’s Basketball Tournament and The Masters golf tournament.
Yet, 2008 was a tough year for RazorGator. Two of its integral executives, Sam Soni and Jason Parker, resigned, and the company found itself embroiled in a lawsuit over Beijing Olympic ticket orders.
In addition, questions remain concerning what the money from the latest round of financing will be used for, and what is the current valuation of the company for which the financing is based.
“Unfortunately I can’t share valuation info with you,” Roback told TicketNews.