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A little bit about TopGolf

Projections for 2016

Total TopGolfAverage Per Facility
Facilities31 (24 existing; 7 opening in 2016)1
Annual Visitors12 Million387,000
Revenue$756 Million$24.4 Million
Profit Margin40%40%
EBITDA$302 Million$9.8 Million
Valuation$1.4 Billion$46 Million
Construction Costs 1$158 Million$18 Million
1. The average TopGolf facility costs $18 Million to build, with the Las Vegas facility estimated to cost $50 Million

Based on a February 2016 investment from Providence Equity, TopGolf is valued at $1.4 Billion, or $46 Million per facility, based on 31 facilities (24 existing and 7 in the pipeline) at the time of investment

TopGolf averages sales of $63 per visitor, and with 12 Million in 2016 projected annual attendance, TopGolf is projected to have revenues of $756 Million ($24.4 Million / facility) in 2016

According to a couple different sources (Value Investors Club and Park City Capital), newer TopGolf facilities have profit margins around 40%, for an average EBITDA of $9.8 Million per facility

How does TopGolf's equipment work?

Each TopGolf golf ball has an RFID chip inside of it that has a unique serial number

When their golf ball is hit into the target, it is captured by the nets (#50 in the image above) and funneled past an RFID reader and antenna (61)

The reader collects the serial number from the RFID chip in the golf ball, and sends it to the server for processing

A server matches the serial number to the player, and determines which section of the target the ball fell into based on which reader the ball was funneled past

TopGolf's system flaws

If a ball is not hit into the nets and funneled past the readers, TopGolf's system has no way of knowing where the golf ball went

Cannot account for or measure roll, backspin, angle of impact or velocity

Limited to variations of 1 game; closest-to-the-pin

The multitude of pits and inability to measure ball characteristics makes it difficult for customers to test new equipment they're considering purchasing

High equipment and setup costs ($2 Million) due to the complexity of their system and large amount of expensive equipment

Our system solves all these challenges