Topgolf: Your pre-IPO Hole-in-One
To Our Valued Investors:
In April, 1997, Tiger Woods earned the green jacket at Augusta. It was his very first PGA major win, and his achievement would change golf forever. Prior to that tournament, the sport had a very specific image of cigars, country clubs, and refined older gentlemen (with the exception of Rodney Dangerfield, of course)... and exclusivity. Tiger's win, along with a fresh Nike endorsement deal that highlighted his vibrant presence, was quite literally a game changer. Almost overnight, golf's stale and stodgy aura became lively and exciting. Tiger paved the way for a new generation of young 18-hole contenders.
For the two decades since, apart from Mr. Woods's fall from grace and his triumphant return, the sport of golf has proceeded on a generally steady and consistent path. This, ladies and gentlemen, is about to change, and perhaps to a degree that will eclipse young Tiger's influence.
Topgolf is going to disrupt everybody's perception of this most genteel pastime. Topgolf is going to rock golf's world. Even the Legendary Greg Norman agrees: "This is a breath of fresh air for the game of golf... This is just what golf needs." Best of all... Topgolf is in the opening chapters of an extended period of explosive growth.
Topgolf has been called "the Dave & Buster's of Golf", but this comparison does not do the company, or the concept, any justice. Topgolf is a memorable experience. Topgolf brings people together, be it over a longstanding love of the game or a brand new fascination with it. Topgolf is first-rate food and entertainment. Topgolf is... well, don't take my word for it. Please click here and watch their promotional video. After you watch it, I challenge you to forget about it and move on. More likely, you will start planning your own visit to the nearest location. Then, when you arrive, you will sharpen your game with individual driving, chipping, and putting challenges aided by illuminated targets on the range. Or you might take a lesson with a pro. You might even shoot some billiards, play shuffleboard, take in a football game on one of their many HDTV screens, or hit the dance floor. Sounds too good to be true? Again... watch the video linked above. You'll see exactly what is grabbing everybody's attention.
Now that you understand Topgolf's appeal, let's examine the appeal of Topgolf's pre-IPO shares. Number one... There is demand, but supply is very scarce. It is the envy of the pre-IPO universe... but of course, your friends at Iron Edge VC now have access.
Founded in 2000 in Watford, UK, Topgolf was destined for greatness. Venture capitalists universally loved the concept, but the finer details needed to evolve. And evolve they did, in grand fashion. In Watford, Topgolf was essentially an upgraded and redesigned driving range infused with brilliant technology, such as those illuminated targets I mentioned and sensor chips implanted in the balls themselves. These innovations enable performance data for individual golfers as well as the really cool golf games offered at Topgolf. In its first year, Topgolf Watford's revenue improved on the location's prior year by a factor of eight. As the large-scale investors took notice, the scale of the enterprise expanded rapidly and decisively to become the all-inclusive entertainment destination it is today. Ladies and gentlemen, this thing is here to stay, and it will continue to grow as locations pop up around the globe. There are presently three Topgolf locations in the UK, one in Australia, and fifty in the United States. Many more are in the works, including ones in Canada, Mexico, and (of course) Dubai.
Among the dozens of savvy VCs who have bought into Topgolf, one notable investor can claim a truly authoritative understanding of the game. Callaway Golf recently upped its Topgolf holdings to 14% of the company, and that decision is paying off handsomely for the equipment maker. Late in 2018, Cowen's John Kernan upgraded Callaway shares based on the Topgolf investment. Kernan speculates that Topgolf's location count is poised to surge to 80 to 100, and that the company could reach $1.8 billion in sales by 2020, up from $500 million in 2016. The franchise could soon be worth as much as $6 billion to $7 billion, Kernan said.
Getting a piece of this rising star is indeed a rare opportunity.
We at Iron Edge VC are extremely proud and excited to have pre-IPO access to the notoriously hard-to-find Topgolf shares. If you would like to learn more, or if you know of anybody else who would, please do not hesitate to contact us by clicking “Get in Touch” below.
As always, shares are available on a first come, first served basis.
All Our Best,
Paul Maguire, Managing Partner
The Iron Edge Team