Lockerz Nearing Closure on $45 Million Round From Live Nation, Others
Seattle-based Lockerz, an e-commerce company trying to build a rewards-based program for teens, is close to securing a third round of capital totaling $45 million.
The led investor is DAG Ventures, with Lockerz’s previous investors, Liberty Media and Liberty’s CEO, Greg Maffei, as well as Kleiner Perkins Caufield & Byers also participating.
New to the round is Live Nation Entertainment, which owns Ticketmaster. Already, Live Nation has started to work with Lockerz to sell concert tickets for Britney Spears, Rihanna, Blink-182 and others. Members of the Lockerz community can use points they earn to get discounts on those tickets.
Savitt, who started the company in 2009, said it has started to see some significant traction, clocking 46 million unique users a month, who spend an average of 17 minutes on the site, and with most of the users falling between the ages of 13 and 35.
With the round of funding, Savitt said they will be expanding the number of places users can redeem their points, making them more valuable. To date, they’ve only been used in Lockerz’s own shop, but going forward, she said, they can be used for concert tickets, like with Live Nation, but also in restaurants and retailers.
“The whole notion of points is to be a social loyalty currency that would reward engagement in a meaningful way. The first phase offered a limited number of prizes, and then discounts on merchandise, and now we are taking that next step to make it a true global currency, by making them redeemable all over — on Lockerz and off of Lockerz,” Savitt said. “We have a lot coming in the next 60 to 90 days.”
Members of Lockerz can earn points, technically called PTZ, in more than 10 ways, including uploading photos, answering polls, watching videos, listening to music, inviting friends, or just logging in. More information on how Lockerz works and its target demographic of Gen Z can be found in this interview with Savitt from February.
The money will also go toward future acquisitions. Earlier this year it acquired Plixi, a photo-sharing site, and more recently purchased AddToAny, a content sharing site, which will ultimately become Lockerz Share. Savitt said they have a third acquisition coming in the next few weeks in the social content space.
The company has about 65 employees, and previously raised $30 million in capital.