StellarAlgo closes $1.5M financing to accelerate the ability to understand and nurture loyalty with modern fans
CALGARY, AB – July 29, 2020 – StellarAlgo, the Calgary-based creator of the leading customer data platform for live audience businesses, has completed a $1.5 million extended seed financing just as sports organizations and live event operators prepare to resume operations after disruption due to COVID-19.
The latest funding round was co-led by Accelerate Fund II and James Lochrie of Thin Air Labs. The round was primarily made up of existing investors who have observed StellarAlgo’s exponential growth and top decile customer retention metrics since the company’s initial capital raise in mid-2018.
The StellarAlgo Customer Data Platform helps sports teams, sponsors, leagues, and other live audience businesses gain valuable insights and a deeper understanding of their fan universe through the use of machine-learning technology. The platform integrates data and enriches fan profiles in order to allow organizations to better segment and personalize their fan outreaches and then measure performance. Founded in late 2016, StellarAlgo has grown to serve over 50 customers with 180% percent year-over-year growth in 2019.
While live events have been one of the industries hardest hit by the pandemic, many sports and events organizations are now navigating how best to utilize their data to engage with fans during the period of disruption, and how to bring them back to sports once it’s over. Live audience businesses are deciding how to re-open in some way and need a means to predict the potential long-term shift in how people want to engage.
“As sports teams size up how best to play again, likely without fans in the stands for the time being, getting a pulse on fan appetite for alternate experiences becomes increasingly important,” said Vincent Ircandia, StellarAlgo Founder and CEO. “We are dedicated to supporting our customers and the fans they serve and are investing in the capabilities needed to understand fans in this new, digital first world.”
StellarAlgo continues to secure new customers with teams from five leagues, including the NHL and MLB signing up this past quarter even as stadiums have been kept closed. StellarAlgo has also retained all of its current customers through COVID, and added functionality to its platform to help teams better understand the changing lead universe, the impact of credits or refunds, and the journeys fans are going through. Looking forward, StellarAlgo’s founders and investors are confident that StellarAlgo’s capabilities lie at the center of future industry needs.
“Great companies and great founders will always find opportunity, even in times of economic challenge,” said Arden Tse, Investment Manager, Accelerate Funds. “The StellarAlgo team is executing a solid growth plan and demand for their services continues in an industry hit hard by the pandemic. The fact that the current raise happened under such exigent market conditions, and was an even bigger raise than the first, is a testament to the strength and vision of this homegrown Calgary company and the true commitment of local investors.”
StellarAlgo’s proprietary Software-as-a-Service Customer Data Platform enables live audience businesses to discover, understand, and connect with their fans. StellarAlgo is uniquely positioned to help organizations quickly and cost-effectively organize, analyze, and leverage the data they need to create the world’s best live event experiences. www.stellaralgo.com
About Thin Air Labs
Thin Air Labs is an innovation and investment company based in Calgary, Alberta. We strategically inject our Design, Community and Capital resources into ventures in sector ecosystems: Health, Education, Games, Work, Cities and Planet. This venture building process reduces risk for investors and ventures creating return on investment as well as impact on investment. We are starting in Calgary but are thinking global. www.thinairlabs.ca
About Accelerate Fund II
Accelerate Fund II is an early-stage angel co-investment fund in Alberta. In May 2020, a follow-on Fund III was announced. Accelerate Fund co-invests alongside angel investors in financing rounds and will typically invest up to $500,000 on the same terms and conditions as private investors. We work with formal angel groups, super-angels, family funds, and individual angel investors. Accelerate Fund invests in private, early-stage Alberta companies in knowledge-based industries including: information and communications technology, clean and energy technology, as well as life sciences, including agriculture and biotech. Accelerate Fund II and Fund III are managed by Yaletown Partners, with the support of The A100 as Manager of the Industry Committee and Alberta Enterprise Corporation as a Limited Partner. www.acceleratefund.ca
Accelerate Fund II