In preparation for the upcoming NOAH London, we have chatted with Optune about the company plans and current trends in digitalization of entertainment industry. The founder of Optune Patrick Horka is going to pitch at the conference on 30-31 October at Old Billingsgate.
Could you tell us more about Optune?
Optune is the first B2B booking platform for the live music industry that makes the business of booking artists more efficient, transparent and enjoyable.
When and why did you launch the business?
Before founding Optune in May 2016, CEO Tobias Horka owned two event-management and artist-management agencies which he ran successfully for 10 years. During this period, he processed more than 15,000 artist bookings for events in Switzerland and beyond. The handling in this industry was largely analogue, opaque, and used a dizzying array of communication channels like SMS, email, whatsapp, facebook news, slack and telephone. This outdated handling led to a lot of chaos, mistakes and bad bookings. So, Tobias decided to sell his agencies and started, together with his co-founders Patrick and Joel, innovating the handling of the industry by creating Optune.
What are your biggest milestones to date?
We have been invited to speak on the main stage at the NOAH Berlin 2019, which helped us to find our lead investor for the ongoing seed round. International market leaders like Swiss Music Award winners, Swiss Comedy Award winners, European MTV award winners and Red Bull World DJ champions trust Optune and pay for the service. More than 16’000 bookings have been registered and processed on Optune.
What is your target market and how big is it?
We are in the two trillion US dollar entertainment industry. Initial target groups are DJs and bands. 56 billion US dollar in booking fees are paid annually worldwide to DJ’s and bands alone, and 7m potential initial Optune users exist. This leads to a total addressable entry market of 4 billion US dollar. Already today, many comedians use Optune. In the near future, we will expand the target group to include all live-performing artists like comedians, speakers, egamers, etc.
Are you planning to raise funds over the coming months and what criteria should your ideal investor have?
We are just about to close the first close of our seed round with committed >700’000 US dollar. Until the of 2019 we’re raising an addition 500k CHF of new funds to close the seed round with 1.2 million CHF. Our ideal investor is either active in the entertainment industry and will help us take Optune to wider international markets beyond the DACH countries and/or is experienced in scaling SaaS enabled platforms.
Why should potential corporate clients meet you at NOAH?
We are in the process of digitizing and revolutionizing the booking processes within the entertainment industry. We have seen a drastic revenue shift in the music industry away from physical sales to live concert (live concert revenues made by artists increased by +300% over the last 15 years). Optune is positioned perfectly to become a leader in this fast growing market.