StellarAlgo has raised $16.5 million in Series A funding to help sports properties connect and harness fan data. Toronto-based Carallas Holdings led the round for the Calgary-based startup, which had grown to service more than 80 teams and events off $2.5 million in previous funding.
Offering a software platform that combines ticketing data with merchandise records, social profiles and more, StellarAlgo currently offers integration with over 100 data sources so that clients can identify and target supporters.
At a simple level, the tool helps clubs grow their reachable base by as much as 40%, StellarAlgo founder Vincent Ircandia said in an interview. Beyond that, teams can use the software to identify fan groups to target for specific promotions and monitor the success of marketing efforts. Evolving machine learning tech bolsters StellarAlgo’s predictive abilities.
“One thing that unites [our customers] is they are really passionate about learning more about their fans,” Ircandia said. “These early adopters are ones that say, ‘I recognize I don’t know enough about my fans, and I need to learn more.’”
The startup managed to stay profitable through the pandemic, and is now focused on helping teams expand their businesses beyond traditional ticketing and merchandise. Attendance may be down across sports, but that has forced clubs to be more creative in their revenue-generating efforts.
“We are seeing more interest … around thinking about fans as more of an asset base, where you’re trying to maximize the lifetime value of those fans,” Ircandia said. “You’re not just an event sales business anymore.”
With the new funding, StellarAlgo plans to open headquarters in the United States and Europe as it doubles its staff. Newbound VC and Bleacher Report founder Dave Finocchio backed the company for the first time as part of the Series A round, joined by existing shareholders Accelerate Fund II, Bluesky Equities and InterGen Capital.