Why VCs are funding a concert business as a hedge against AI
As most VCs pour billions into AI startups, a select few are making a counterbet on a traditionally low-tech business: Concerts.
RASA, a concert business founded by three tech entrepreneurs in 2023, is attracting venture capital investment as a potential hedge against the growing influence of artificial intelligence (AI). The company, which hosts electronic dance music festivals and live events, has raised more than $8 million to date and is planning a two-day festival on the Santa Monica Pier later this month.
The founders of RASA aim to become the "Palantir" of the concert business, offering an intelligence layer that provides event producers with detailed insights into their customers, their social connections, and what draws them back. Rather than focusing on high-profile artists and lavish amenities like bottle service, RASA prioritizes creating engaging experiences that do not rely on AI, such as scenic settings and a strong sense of community.
The company's investors, including Paul Martino of Bullpen Capital, see the value in real-life experiences as a counterbalance to the increasing prevalence of AI.
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