Fast-growing Chicago startup Reverb unveiled its new expanded office Wednesday as the popular music gear marketplace doubles the size of its Roscoe Village headquarters. But CEO David Kalt is already eyeing the company's next real estate move as it continues to grow.
Reverb announced that it has added 10,000 additional square feet at its office on Lincoln Ave., equipped with a new video production space, recording studio and green room for artists. Reverb now has 170 employees, 155 of which are based in Chicago.
But once Reverb hits 250 to 300 employees, the startup will be too large for its neighborhood office, Kalt said, noting that the company's next move could be to build a "campus" in a warehouse space outside of the city center.
"We will quickly outgrow this space," Kalt said.
Reverb has grown to be one of Chicago's most high-profile startups. Launched in 2013, the company has built an online marketplace where you can buy and sell new, used and vintage music gear. The company has raised $47 million in venture capital to date.
Kalt said Reverb expects to close 2018 with $600 million in sales, with revenues of $42 million. That's up from $400 million in sales and $26 million in revenue last year. Reverb sees roughly 10 million unique visitors to its website each month.
Kalt, a serial entrepreneur who founded optionsXpress, an online investing firm that sold to Charles Schwab for more than $1 billion, hasn't been shy about his desire to take Reverb public. Though based on the company's projections, that probably wouldn't happen until at least 2021, Kalt said.
"Being a public company gives you global credibility," he said.
Reverb sees a lot of opportunity in international markets, particularly in Europe and Japan. It's also working to grow other initiatives like Reverb LP, its vinyl record marketplace that launched last year. Kalt said Reverb LP has around 2 million record listings on its site, and wants to have 10 million within a year.
"We really see our opportunity to connect the dots globally, making the world more musical," he said. "Connecting musicians all over the world is a huge, huge opportunity."
