Head of Venu sits down with Freedom Finance Global to talk live entertainment

The U.S. live music industry is setting new records: Since the pandemic, concert ticket prices have surged 42%. Fans are now paying hundreds or even thousands of dollars for the chance to see their favorite performers live. Yet despite the booming demand, much of the country’s concert infrastructure remains outdated, with many venues not having been updated in years.

That gap between consumer expectations and venue quality caught the attention of entrepreneur J.W. Roth. He set out to reimagine the live music experience, building unique venues with VIP lounges, fireplaces, plush seating, and unobstructed sightlines directly onto the stage. In a conversation with Vadim Merkulov, head of research at Freedom Finance Global, Roth outlined how his company, Venu, is delivering on that vision – without spending its own capital on construction.

Roth refers to himself as a “good ole ranch kid,” raised in the heart of the Colorado Rockies. Forgoing a traditional education, he obtained a high school equivalency certificate and began working as both a sheriff’s deputy and a food distribution manager.

His first major business success came as a cofounder of biotech firm AspenBio Pharma, which provided the capital to launch Roth Industries, a frozen foods company he built with his son. But throughout his varied career, one constant remained: a deep-rooted love for music, as he said in the interview with Merkulov.

He says today’s music market is peaking, with concert ticket sales having grown for a decade to record highs and an ever-accelerating influx of new artists. Yet despite this momentum, he observed that concert venues are outdated. He envisaged a new kind of space: modern, tech-forward places where artists and fans can meet. In 2017, he founded Venu to build, own, and operate premium concert venues and on-site hospitality destinations.

Roth sees the concert experience as about more than just music. His goal is to build venues that offer a full sensory environment, blending entertainment, food, drink, and comfort.

Venu’s locations are defined by distinctive concepts. Luxe FireSuites, for example, are private hospitality suites complete with fireplaces and dedicated service. Aikman Clubs, developed in partnership with three-time Super Bowl champion Troy Aikman, offer exclusive membership experiences. These upscale features have helped the company to generate as much revenue from bars and restaurants as from ticket sales, Roth says.

Roth emphasized that Venu guests often arrive early to dine and remain well after shows to socialize in the venue’s clubs, which sets the company apart from traditional concert venues and boosts overall revenue per visitor.

Venu’s mission is to create something more than concert halls, but also environments infused with atmosphere and emotion, Roth told Freedom Finance Global's Merkulov.

Venu describes itself as a «movement» created by fans, for fans. And that ethos extends to its financing model: The company is funded primarily by individual investors who are both passionate about live music and interested in long-term returns. Roth noted that municipalities are typically enthusiastic about Venu’s entry into their markets, since the venues serve as anchors for a broader entertainment ecosystem encompassing restaurants, activity zones, and public entertainment spaces.

One of Venu’s hallmark offerings is long-term VIP suite leasing. At the Colorado site, for example, individual seats within a FireSuite are leased on a 99-year basis. Each suite accommodates up to eight guests and includes one parking space. Investors are offered a projected 15% annual return on lease rentals. While the full leasing price is undisclosed, the one-time fee for the lease costs $200,000. Roth estimates Venu earned $22 million from VIP suite leases in 2023 and expects that figure to rise to $77 million in 2024, with nearly $1 billion projected in 2025.

Construction costs for each venue range, according to Roth, between $150 million and $300 million. Approximately 40% of this is covered by local governments, typically everything related to infrastructure, like utilities, roads, gas, and electricity, besides land grants and concessional loans, some of which may be written off upon project completion. Another 40% is financed by the sale of long-term VIP zones to investors. The remaining capital is raised via sale-leaseback agreements, in which real estate assets are sold to investors and then leased back by the company for operation.

Venu went public on the Nasdaq in late November, raising close to $14 million in gross proceeds. Since the IPO, the stock has gained roughly 33%. Still, trading volumes remain low, according to Freedom Holding cofounder Igor Klyushnev. «Daily trading volumes of Venu shares average just 66,000, while 500,000 to 1 million shares per day is considered healthy liquidity,» Klyushnev explained. «Bid-ask spreads in the case of Venu can range from 5% to 10%.» Thus, investors are advised to use limit orders rather than market orders when transacting in the stock.

According to data from MarketWatch, Venu stock is up 45.5% year to data. The stock is tracked by three analysts, and all have «buy» recommendations on it. Their average target price suggests upside of about 6.5% versus current quotes.

Venu currently operates in four states: Texas, Oklahoma, Colorado, and Georgia. It has a total of 16 venues, including both concert halls and dining spots. Most of the venues are open-air, but thanks to advanced climate control systems, they operate year-round. In colder months, hydronic heating systems maintain indoor temperatures by heating water to 60 degrees Celsius; In summer, air ventilation and chilled water loops regulate the climate.

Roth noted that operational risks are minimal, as third-party partners are responsible for construction, interaction with municipalities, and booking artists. He considers Venu’s operating partners to be among the best in the industry.

He also expressed little concern about inflationary pressures. Rising construction costs, he said, are simply passed through via higher pricing for VIP FireSuites. After initially questioning whether demand would hold, he found that even with price increases, appetite for premium spaces remained strong. In many cases, municipalities have stepped in with more support.

Despite growing investor interest, Venu remains unprofitable. In the first quarter, the company posted a net loss of $19.4 million, up 23% from the same period the year before. Revenue declined 11% to $3.5 million, including $2 million from food and beverage sales, $980,000 from ticketing, and $473,000 from sponsorships and rentals.

Roth said the company’s current portfolio includes multiple projects worth a combined $1.2 billion. He described Venu as one of the fastest-growing companies in its space, with plans to construct an additional $5 billion worth of venues over the next 36 months. Five new locations are expected to launch within the next year.

Roth added that Venu is currently looking at approximately 35 U.S. cities. The company targets metro areas with populations exceeding one million and proximity to major highways – this makes it easier on artists doing nationwide tours.

The AI translation of this story was reviewed by a human editor.