What is Reverb? Reverb Review

introduce

The Reverb platform provides users with tools to create product lists, browse new and old instruments, and compare historical pricing and sales data. It also serves as an education and music discovery platform, providing rich content, including product reviews, demo videos, guitar history, and musician interviews, just like a media + e-commerce platform.

Platform Model

Sellers can only sell products at a fixed price. Reverb also provides several ways to promote products, such as "Reverb Bump". Bump listings are mainly located at the top of certain pages or in prominent positions, with higher exposure.

The platform also offers a Preferred Seller program, which sellers can sign up for as long as they meet minimum requirements. The program provides sellers with discounts on selling fees and other additional protections, while also allowing sellers to stand out.

Business Model

Reverb allows sellers to list their products for free, but it charges sellers a 3.5% commission and a small commission for credit card processing. The platform has a minimum selling fee of $0.50 and a maximum of $350.

Another factor in the company's success is its customer service team, about 85% of whose employees are musicians.

Financing

In June 2013, Reverb received US$500,000 in seed round financing.

In November 2013, Reverb raised $2.3 million in funding from investors including Cheap Trick's Rick Nielsen, Lightbank co-founders Brad Keywell and Eric Lefkofsky, Cracker's David Lowery and Camper van Beethoven, Silicon Valley entrepreneur Eric Ries, and country music star Brad Paisley.

In January 2015, it raised another $4.2 million.

On December 3, 2015, Reverb completed a $25 million Series B financing round led by Summit Partners.

In August 2017, Reverb announced an additional $15 million in funding from 65 investors, including Paypal co-founder Max Levchin, Silicon Valley investor Roger McNamee, former Twitter COO Adam Bain and Shutterstock CEO Jon Oringer.

Development History

David Kalt founded Reverb in 2013, shortly after he acquired musical instrument store Chicago Music Exchange.

In 2015, Reverb.com's transaction volume reached 120 million US dollars, with 600,000 registered users. More than 200,000 buyers have purchased music-related instruments on the platform, and 72,000 users including instrument retailers and individual users have uploaded instrument "sales".

In August 2016, Reverb hired its first local employees in the UK, France, and Australia. In the same month, the company launched its mobile app outside of North America. Within a year of expanding into Europe, the company saw a 700% increase in users in the region and a 300% increase in sales in the region.

In 2016, the company generated $16 million in revenue and earned $240 million in sales of new and used gear through its platform.

In August 2017, Reverb was ranked #18 on the Inc. 5000 list of fastest growing private companies, with a 3-year growth rate of 12,327% (2013-2016).

In December 2017, the company projected full-year sales of nearly $400 million. Later that year, the company launched Reverb LP, a platform for selling records, and Reverb Foundation, a nonprofit advocacy program.

In late 2017, the company launched Reverb LP, an online marketplace for LPs and other physical music, and the Reverb Foundation, a nonprofit supporting programs and initiatives that increase music education.