VCs bet on concert businesses to offset risks posed by AI advancements

Martino is among roughly a dozen venture capitalists who have so far invested around $9.5 million in RASA World, a Los Angeles-based startup founded in 2023 by three serial tech entrepreneurs. RASA World focuses on producing electronic dance music (EDM) festivals and live events globally, targeting the technology community. Earlier this month, the company hosted an EDM festival for 3,000 people on the San Francisco waterfront. This weekend, it is organizing a two-day festival at the Santa Monica pier headlined by DJs Arodes and Claptone, with an expected turnout of 8,000 attendees.

Unlike typical concert promoters who spend heavily on big-name acts, RASA World has put its capital toward hiring engineers and data specialists. CEO Ahmad Muhaisen, who grew up in Lebanon and studied computer engineering before moving to the US, describes the company’s internal software as a “super tool” that merges data from ticket sales, social interactions, and attendance. This technology focus has resonated with investors, who appreciate hearing talk of customer acquisition cost, lifetime value, and scalable distribution rather than just event promotion.

The insight, according to Muhaisen, is to view concertgoers not simply by how much they spend, but by their influence and ability to attract others. “We know in our system the top thousand people who are responsible for inviting 20,000 people,” he said. RASA rewards these key connectors with free tickets and upgrades, maximizing network effects and customer loyalty. The company also prioritizes scenic and Instagram-friendly settings over famous headliners, echoing Muhaisen’s belief that if attendees have fun without the aid of alcohol or bottle service, the event’s value is even greater.

RASA draws partial inspiration from Burning Man, which has long appealed to Silicon Valley’s elite, but aims to capture a younger, city-based audience reluctant to spend days off-grid in the desert. “There are people who have not been to Burning Man, but want that community feel,” said Semil Shah, general partner at Haystack Ventures, another RASA investor. “They want to have a more contained experience.”

For investors like Martino, the company’s concerts also offer a much-needed break from the AI-dominated discourse in tech circles. Despite occasionally overhearing attendees discussing AI on the dance floor, Martino was pleased to see even the most ardent tech enthusiasts take time to disconnect. “Thank God we got them away from their AI for 25 minutes,” he joked.

Looking ahead, Muhaisen envisions RASA as the “Palantir of the concert business,” providing an intelligence layer that gives event producers deeper insights into their audiences and what draws them back. As the startup grows, its approach may offer a blueprint for combining technology and live events to build resilient communities in a digitized world.