Since its inception in 2002, Clubessential has become one of Cincinnati's fastest growing tech companies. Within the last two years, it’s seen an exit sale, a new CEO and has begun acquiring other companies in the software development space.
The tech company, which was bought by Boston-based Battery Ventures in 2016, sells software to country clubs that help them communicate with and manage their members. Through a series of modules, Clubessential helps their clients create websites, smartphone apps, and online reservation and payment portals, among other things.
The company was originally founded by Bill Ivers Sr., but when he retired in the summer of 2016, he was replaced by technology-veteran Randy Eckels, who now serves as Clubessential’s CEO.
“We’ve innovated around all kinds of software solutions that help private clubs manage their business, and that business is attracting and retaining memberships, and keeping those members engaged and around for life,” Eckels said.
He made his first major move as CEO in September when Clubessential acquired PrestoSports in Rockville, Maryland, for an undisclosed amount. The acquisition of the company, which helps college athletic departments build their websites, was good for business because it helps Clubessential expand their footprint in the website and software service space, Eckels said.
In 2018, Clubessential will be looking for other, similar companies to acquire and add to its portfolio, specifically looking at infiltrating the health and fitness industries.
“We see it as a natural extension to move into that space,” Eckels said.
Clubessential employs about 145 people across offices in Cincinnati; Boston; Kansas City, Missouri; Austin, Texas, and Raleigh, North Carolina, and more than 1,300 private clubs use their software. The company’s 2016 revenue exceeded $20 million and it’s expected to grow by about 15-20 percent this year, said Brian Carley, the senior vice president and chief financial officer at Clubessential.
Over the last two years, Cincinnati has increasingly become a business hub in which startups and tech companies can thrive. According to the Kauffman Index of Entrepreneurship, which tracks entrepreneurship activity across the country, Cincinnati was one of five cities that saw the biggest positive shift in ranking from 2015 to 2016. It jumped from 35th to 16th place out of 40 cities on the list.
As a result, more and more resources are now available to startups launching in the area, allowing them to stand out, receive funding and grow at higher rates. But when Clubessential launched more than 15 years ago, the Cincinnati startup and tech ecosystem wasn’t what is it today, forcing them to grow in more traditional ways, Carley said.
“Even though Cincinnati has a fantastic and dynamic startup environment, what’s interesting is that Clubessential grew organically,” Carley said. “It was self-funded by the founders and really didn’t have to take advantage of that.”
