Cvent has acquired Goldcast, the virtual event and video platform for a reported $300M.
Goldcast was the last company to raise a substantial round out of the pandemic.
An initial $10M round and a subsequent $28M round in Feb 2022.
When I looked at the announcement of the last round, I was concerned. I had just been laid off from Hopin, and I knew things weren’t looking pretty for virtual events.
Goldcast leadership was quick to realize it as well, with an astute repositioning of the platform to video and later to AI.
These features were in much higher demand among CMOs and marketing teams, the true objective of most software companies today.
What’s the story?
I've read some absurd and some good takes on social media on this deal.
My perspective comes from doing eventtech analysis for 17 years now. In the past three years, I've worked with 18 eventtech companies on media and direct consulting, conducted eventtech research, and published the go-to map for the ecosystem.
So here goes.
The story is that Cvent has definitely made a strategic move to become a Martech tool.
It started with Jifflenow, then Splash, and continued with the announcement of Cvent Essentials, and it now closes the gap with Goldcast.
This acquisition has very little to do with AI or technology. I like to use Goldcast, but the technology isn't something Cvent can’t build.
That's a pretty big statement. Why do I say it?
I spent time at IMEX talking to McNeel Keenan and Reggie Aggarwal, respectively, Product Lead and CEO.
They are building far more complex features than Goldcast or any other eventtech tool offer today. The CventIQ roadmap is very complex.
This is a clear market move to acquire Goldcast’s very precious customers. The company did an incredible job of collecting some top logos.
From what Axios reports, those logos were worth $300M.
They are taking these clients away from others, namely two companies I won’t name, since they already have beef with me. I wouldn’t want an angry email from their CMOs.
The Strategy
The traditional plot has always been to acquire strategic ICPs, but the move into the Cvent ecosystem hasn’t always worked.
I am old enough to remember Doubledutch.
The complaints about being brought into Cvent from non-core meeting planning ICPs, were real.
Well, Cvent today has a growing offer for marketers, which means its customers won’t need certification to use it.
They will just use Splash, Jifflenow, and Essentials, and they will be more than happy.
Cvent feels confident about its ability to convert them into full suite users.
There is no "tech consolidation"
There is just Cvent buying companies and waiting for others to struggle (a 60-person layoff at a competitor went completely unreported in industry news).
This is a market Cvent is winning and will continue to win.
What about competitors?
They are mostly watching. At what cost?
If Cvent keeps on buying and building, its offer will be too good to compete with. The issues their product has today may not be there in the future.
Cvent now has an internal alternative to the Cvent marketers didn’t like.
The ‘we are a Cvent alternative’ positioning could not work very soon. Yes, some are still winning deals on better service, pricing, or use case, but the game has changed. You can now code at a speed that was unthinkable 5 years ago, and Blackstone made Cvent grow up big time.
What’s next?
From a product perspective, the true disruptor is AI.
AI-first products have the opportunity to reshape the market; they can challenge giants like Cvent, which, by the way, is not sitting on the sidelines. They are building and acquiring AI capabilities.
This industry is desperate for innovation.
Waiting for technology that keeps its promises, the ball is in the builders’ court.
Which game eventtech CEOs choose to play over the next 9 months will determine their standing in the market.