While many venture capitalists are investing heavily in artificial intelligence startups, a few are diverting their attention towards a more traditional industry: live concerts. These investors believe that as more aspects of life shift to digital screens, the experiences that pull people away from technology will become increasingly valuable.
"Experiences in real life serve as a strong counter to AI," remarked Paul Martino, managing partner at Bullpen Capital. "When seeking an escape from AI, a concert is the place to be."
Martino is among a select group of VCs who have collectively invested approximately $9.5 million in RASA World, a startup based in Los Angeles that organizes electronic dance music festivals and live events internationally. Earlier this month, RASA hosted a festival on the San Francisco waterfront, attracting 3,000 attendees. This weekend, the company is set to host a two-day festival at Santa Monica Pier, expecting around 8,000 music fans, featuring performances by DJs Arodes and Claptone.
Founded in 2023 by a trio of entrepreneurial tech veterans, RASA is crafted specifically for tech enthusiasts and is directed by tech-savvy leaders. Instead of splurging on high-profile artists, the company has invested its funds into hiring engineers and data experts to develop what cofounder and CEO Ahmad Muhaisen refers to as an "internal super tool" that integrates data from ticket sales, social engagement, and attendance.
A significant part of RASA's allure to investors lies in the founders' capability to communicate in the familiar language of the venture capital realm. Muhaisen noted that investors often expect to encounter a conventional "nightlife promoter," only to be pleasantly surprised with discussions centered around metrics like customer acquisition cost, lifetime value, and scalable distribution models.
"Investors come in thinking they’re meeting with nightlife promoters, but instead, they find tech founders,” he shared.
Muhaisen's journey began in Lebanon, where he studied computer engineering. After relocating to the US, he co-founded a fintech enterprise but transitioned in 2022 to focus on the events he had been orchestrating in San Francisco.
"My events began with just 50 attendees in my home," Muhaisen recounted. "Before I knew it, we had a thousand participants and were renting exquisite venues."
He envisions RASA becoming the equivalent of "Palantir" in the concert sector—creating an intelligence platform that offers promoters valuable insights about their audience, their social networks, and factors that encourage repeat attendance.
RASA’s focus extends beyond merely identifying patrons based on their spending habits. More crucial is recognizing those who are instrumental in drawing large groups of friends.
“Our system tracks the top thousand influencers responsible for inviting 20,000 attendees,” Muhaisen explained, allowing the company to reward these key individuals with complimentary tickets and upgrades.
Emphasizing the term "experience," Muhaisen prioritizes inviting visual surroundings over prominent DJs. RASA does not aim to compete with mega-festivals like Coachella, as the fierce competition for top-tier talent can cut into profits.
“Chasing bigger names can diminish margins since there’s a limited pool of talent that everyone vies for,” he stated.
In line with a more refined Silicon Valley ethos, those in search of lavish bottle service might also find disappointment at RASA events.
"If someone has a great time at our concerts without alcohol, we consider it a successful event," Muhaisen remarked.
Drawing inspiration from the iconic Burning Man gathering, known for attracting tech elites, RASA seeks to capture the attention of younger audiences craving community in a more accessible urban setting.
"There are plenty of people who haven’t experienced Burning Man but yearn for that sense of community,” noted Semil Shah, a general partner at Haystack Ventures, which supports RASA. “They prefer a contained experience without venturing off into the wilderness for days.”
This past summer, Martino attended a RASA event, hoping for a brief reprieve from the omnipresent conversations about AI that dominate the tech industry. However, he found himself amidst discussions about the topic once more.
“It was amusing to be at a RASA event and see some of the strongest advocates for AI mingling,” he recalled, though he expressed relief when they stepped away from the tech chatter to hit the dance floor.
“Thank goodness we managed to pull them away from AI for at least 25 minutes,” he concluded.
