While playing music is an act of love for millions of musicians across the country, the high prices of shopping for a new guitar or keyboard at a chain retailer can leave consumers feeling as if someone’s playing them like a fiddle.
However, Reverb Founder and CEO David Kalt just scored a massive war chest that might help his company take the instrument marketplace back to its roots.
Reverb, the peer-to-peer online instrument marketplace, announced Friday (Dec. 4) that it had secured $25 million in Series B funding, thanks to Summit Partners leading the round. Originally launched in 2013, Reverb is expected to clear $120 million in gross transactions by the end of 2015, and Kalt only sees room for more growth.
“The market for new and used musical instruments is enormous — over $23 billion globally,” Kalt explained in a statement. “Reverb brings new life to old musical instruments by putting them side by side with new gear while giving musicians a convenient experience with price transparency and engaging content that stokes their passion for music. With Summit’s support, we are focused on further establishing our position as the innovative leader in the market.”
In an interview with TechCrunch, Kalt went on to explain that when he realized how fragmented and non-transparent the instrument market was — new and used equipment is rarely sold by the same merchant, and prices are often a far cry from what shoppers are willing to pay — the idea of an online marketplace that sold both vintage guitars from noted rock stars of the past and $1 replacement strings was too good to pass up.
Kalt claimed that by 2016, the combination of increased funding and attention from consumers will help Reverb clear $250 million in sales, which could push them into profitability just three years after launch — enough good news to strike a chord with any investment group.