|1||Own equity in the reimagined $200B live entertainment industry that will come roaring back in 2021.|
|2||Members can enjoy thousands of events for one monthly fee. 20,000+ members 300+ new members daily.|
|3||$1.2MM of digital, social and radio media available from investor TownSquare Media (TSM).|
|4||TSM is 3rd largest US radio network with 327 stations and digital properties reaching over 60 million fans monthly.|
|5||Data driven founder with extensive experience in consumer entertainment data. Data set for member acquisition of over 20MM US consumers.|
|6||Investors include NHL Hockey Star Jacob Trouba, Entrepreneur Tom Chavez with $1.2B in exits to Microsoft & Salesforce.|
|7||Credit based gross margin positive business model on every transaction.|
|8||Recurring revenue with expected $500+ Annual Recurring Revenue / Member.|
I am investing in festivalPass based on the vision, passion and experience of Ed Vincent. There is an untapped market for an aggregated live events marketplace and community. In addition, the pandemic has created a pent up desire and need for in person events. festivalPass is an innovative live events marketplace advancing how consumers access and attend live events and how venues/rights holders market live events across all genres (music, film, food & wine, sports and theater) analogous to what Airbnb did for the hospitality industry.
festivalPass is driven by an underlying data platform helping members be rewarded for their commitment to live.life.live. and venue/rights holders a platform to connect with their passionate audience. Ed Vincent's professional experience as repeat entrepreneur, operating a 70 person experiential agency from 2003-2008 where he launched and operated festivals and large events, technology and data experience founding a SaaS business from 2012-2014 and most recently founding and operating a consumer data consultancy and software platform for entertainment brands from 2014-2019 for clients including A&E, AMC, Corus, Screenvision and MoviesPass) make him the ideal leader to bring this industry changing marketplace to fruition.
CEO Ed Vincent, an EO Austin Member, has been an entrepreneur for over 20 years with multiple exits including an eCommerce company sold in 2001 and a SaaS company sold in 2014. Most recently he founded and ran a data consultancy and software platform in the entertainment space with clients including A&E Networks, AMC Networks, MovieTickets.com, Screenvision Media, MoviePass and numerous TV, Film and Media related clients. The festivalPass team are experts in consumer data. Ed also ran a 70 person experiential marketing agency from 2002 through 2008 activating big brands at big events. He developed the concept of Maxim Bungalows hotel in the Dominican Republic and even owned the Dominican Republic International Film Festival. This is where he fell in love with the community and passion created within a live event setting.
After acting as the interim Chief Data Officer or MoviePass and tracking the success and business models of various subscription services and marketplaces, Ed felt the time was right to make live destination experiences more affordable, more social, have less friction and without the high ticketing fees prevalent in the industry. We make that possible by partnering with event owners across all genres (music, film, food & wine, sports, theater, and more) making their offerings available to our members and providing data insights that help drive the partners business across all revenue streams including sponsorship, advertising spend, and ticketing.
festivalPass is the world's first festival subscription service across music, film, food & wine and more. Now, festival-goers from music, art, food & wine, film, and other interests can join millions of fans from around the world.
festivalPass has $1.2MM of media to spend across social, digital, and radio on over 321 radio stations and websites as well as dozens of genre specific websites reaching a total of 80 million people monthly.
festivalPass has a unique data strategy that includes aggregating consumer data within the platform, from partner websites and mobile apps and other sources enriched from a data graph of over 250 million US consumers. We will enable the demographic and behavioral data to be used for in app personalization/discovery, partner insights for our venue/event owners and to execute highly targeted programatic media buys across publisher partners.
We offer six different plans ( see below). We partner with event owners and ticket aggregators to acquire inventory at a discount that our members redeem their credits for. We keep part of the discount margin for festivalPass and our members receive some of that discount to attend events for less money as a benefit of membership.
Fall 2019 -
Secured initial seed funds from high profile entrepreneurs and professional hockey player for NY Rangers.
Went live with robust web app with an integrated credit based currency and unique data architecture.
Secure 20MM CRM records to enhance understanding of data and outbound email prospecting.
Spring 2020 - Secured $1.2 million of social, digital and on air media from 3rd largest radio network in the US.
Been interviewed by over 20 podcasts and have professional athletes and music artists as stakeholders in company.
Launched our own Podcast called festivalPass Stories
Fall 2020 -
Over 21% of unique visitors that come to festivalPass.com sign up for an account.
Over 13,000 members with 300+ joining every day.
Partnership with National Independent Venue Association (NIVA) with 3,000+ venues members that will have access to festivalPass to provide inventory to thousands of shows across the US.
festivalPass will use the funds from this raise to continue development of it software platform across web and mobile, secure and activate partnerships with venue and festival owners increasing ticket inventory, integrate a programatic advertising ecosystem for inventory partners to use festivalPass data to reach their targeted audience. Since festivalPass already has over $1 million in media spend at its disposal through previous investor, the funds will go directly into operating and growing the business the business (software development, data infrastructure, partner acquisition and management).
festivalPass has financial statements ending December 31 2019. Our cash in hand is $269,845.73, as of April 2020. Over the three months prior, revenues averaged $500/month, cost of goods sold has averaged $350/month, and operational expenses have averaged $20,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
festivalPass is the world's first festival subscription service across music, film, food & wine and more. Enjoy hundreds of festivals locally and globally for one monthly fee.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
festivalPass, LLC was incorporated in the State of New York in February 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in February 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $1,425,000 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
festivalPass, LLC cash in hand is $269,845.73, as of April 2020. Over the last three months, revenues have averaged $500/month, cost of goods sold has averaged $350/month, and operational expenses have averaged $20,000/month, for an average burn rate of $19,850 per month. Our intent is to be profitable in 9 months.
Since the date of the reviewed financials we raised an additional $275,000 in cash and $1,000,000 in media rights across hundreds of websites and social media channels. The media rights will be used to seek to acquire new customers. If we can execute the media rights successfully, we may be able to acquire approximately 10,000 subscribers with our media rights.
If successful, we would generate approximately $400,00 MRR (Monthly Recurring Revenue) by end of 2020 or a ARR (Annual Recurring Revenue) run rate of approximately $5MM. We expect to be break even at that point.
The COVID-19 pandemic has potential to have an adverse impact on the entertainment industry especially with regard to live events and, if repercussions of the pandemic are prolonged, could have a significant adverse impact on our business, which could be material. Our management cannot at this point estimate the impact of the outbreak on its business and no provision for this outbreak is reflected in the accompanying financial statements.
There is a possibility that consumers may not find a subscription product for live events more beneficial than direct purchasing.
One of the large event producers could compete with us, using our idea with greater resources.
We are dependent on event ticketing inventory that other organizations own and operate. If we are not able to generate enough interest for events to be on our platform, our business model will be challenging.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
We collect and store sensitive data. The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. Like others in our industry, we continue to face advanced and persistent attacks on our information infrastructure where we manage and store various proprietary information and sensitive/confidential data relating to our operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack our products or otherwise exploit any security vulnerabilities. Additionally, sophisticated software and applications that we produce or procure from third-parties may contain defects in design or manufacture, including “bugs” and other problems that could unexpectedly interfere with the operation of the information infrastructure. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties. In addition, any such access, disclosure or other loss of information could disrupt our operations and the products and services we provide to customers, damage our reputation, and cause a loss of confidence in our products and services, which could adversely affect our revenues and competitive position.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
We have a limited operating history upon which you can evaluate our performance, and accordingly, our prospects must be considered in light of the risks that any new company encounters. We were formed on February 20, 2019 as a New York limited liability company. Our proposed operations are subject to all business risks associated with new enterprises. The likelihood of our creation of a viable business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the inception of a business, operation in a competitive industry. You should consider our business, operations and prospects in light of the risks, expenses and challenges faced as an early-stage company.
Ed Vincent is a part-time officer. The company may not make as much progress if he were employed full-time.
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